Peso falls over Euro debt concerns, lower US corporate earnings

AFP FILE PHOTO

MANILA, Philippines—The peso fell on Wednesday as concerns over the Euro debt crisis and lower corporate earnings of some US-based firms dimmed the outlook on the global economy.

The local currency closed at 41.36 against the US dollar, down by 4.5 centavos from the previous day’s finish of 41.315:$1.

Intraday high hit 41.355:$1, while intraday low settled at 41.41:$1.

Volume of trade amounted to $743.87 million from $690.45 million previously.

The decline of the peso came following reports that the Greek government has been having difficulty gathering support for proposed austerity measures, which foreign lenders have required before granting financial aid to the debt-ridden country.

The depreciation of the peso likewise came following reports that some large firms from the United States were suffering from lower earnings in 2012.

Traders said unfavorable developments in Europe and the United States were viewed as adversely affecting the export performance of emerging economies like the Philippines. The developments in the West likewise dampened appetite for emerging market assets, such as peso-denominated ones, they added.

The depreciation of the peso came with the drop of the Philippine Stock Exchange Index by 33.63 points to 5,398.69.