Peso dips due to rising concerns over Euro debt situation
, Philippines—The peso fell on Thursday, dragged by intensified concerns on the debt situation of Europe.
The local currency closed at 42.54 against the US dollar, down by 6.5 centavos from the previous day’s finish of 42.475:$1.
Intraday high hit 42.415:$1, while intraday low settled at 42.61:$1. Volume of trade dropped to $858.80 million from $950.98 million previously.
The decline in the peso, which reflected the movement of some other Asian currencies, came as borrowings costs for France increased amid lingering concerns on the European country’s fiscal situation. The concern over France’s fiscal condition is compounding worries over the debt woes of other European countries.
Major credit rating agencies have affirmed the top rating for France, but this did not prevent the financial market from expressing their concern over the fact that even that country has been facing some fiscal difficulties.
Traders said the attention on France has been causing investors worldwide to be more risk-averse, and thus pull out investments even in emerging Asian markets like the Philippines.
