MANILA, Philippines—The peso closed even weaker on the first trading day of the week as investors once more manifested risk aversion to assets from emerging economies due to lingering concerns over the debt crisis in the Euro zone.
The local currency closed at 43.43 against the US dollar on Monday, down by 31 centavos from Friday’s finish of 43.12:$1.
Intraday high stood at 43.205:$1, while intraday low settled at 43.44:$1. Volume of trade inched up to $867.43 million from $495.08 million previously.
Traders said some investors decided to give up investments in emerging market assets in favor of the US dollar, adding fund owners wanted to temporarily fly to “safety” as a positive outcome of the debt problem in the West has not been seen.
Last Friday, Greece suffered a two-notch downgrade of its credit rating by Fitch, which cited the country’s serious debt woes.
Traders said the problems in the Euro zone have been adversely affecting sentiment even on emerging markets in Asia, including the Philippines.
Conclusion
The continuing drop-rate of Philippine peso may not affect us today but it is felt in the long run, even if the deference of currency has dropped of by 31 centavos, it has already an effect in the spending power of a peso or our currency. For people like me (student) may suffer (like wise in the near future if it continues) from increase of our daily needs like food, transportation fares,etc.(not to mention we might also have to reduce time and money we usually spend in a day, including leisure time) I personally think that the rise/drop of the quality of the currency of an nation can also be viewed if the nation is improving to prosperity or is going to a bad end.
