Peso slightly dips on reports of slow exports growth in October

AFP FILE PHOTO/TED ALJIBE

MANILA, Philippines—The peso moved sideways on Tuesday following reports that Philippine exports grew but by a slower pace in October.

The local currency closed at 40.955 against the US dollar, down by 1.5 centavos from the previous day’s finish of 40.94:$1.

Intraday high hit 40.93:$1, while intraday low settled at 40.96:$1.

Volume of trade amounted to $493 million from $597.7 million previously.

Traders said growth in exports during the month was viewed by some investors as an indication that global economic conditions might not worsen as some earlier feared. Higher exports also supported expectations that the Philippine economy would continue to post a decent growth rate over the short term despite the ongoing crisis in the eurozone.

Nonetheless, traders also said the slowdown in exports growth reflected volatility of the external environment.

The National Statistics Office reported Tuesday that merchandise exports of the Philippines amounted to $4.4 billion in October, up by 6.1 percent from a year ago.

The year-on-year growth rate in October was much slower than the 22.8 percent in September.