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Nov. 16 (Bloomberg) -- The Philippine peso slumped to the weakest level in almost a month on concern Europe’s debt crisis is deepening, prompting investors to shun emerging-market assets.
The MSCI Asia-Pacific Index of regional stocks dropped for a second day after the extra yield investors demanded to hold bonds from France, Belgium, Spain and Austria instead of German bunds climbed to euro-era records. Remittances, the Philippines’ second-largest source of foreign-exchange, increased at a slower pace in September, a report showed yesterday.
“We are looking at continued volatility in credit markets, reflected in all types of asset classes including equities, bonds and currencies,” said Estelito Biacora, senior vice president for treasury at Bank of the Philippine Islands in Manila.
The peso dropped 0.2 percent to 43.490 per dollar as of 11:20 a.m. in Manila, according to Tullett Prebon Plc. It touched 43.522, the weakest level since Oct. 21.
The yield on the government’s 6.375 percent bonds due January 2022 climbed three basis points, or 0.03 percentage point, to 5.75 percent, according to Tradition Financial Services.
Money sent home from abroad rose 8.4 percent from a year earlier to $1.7 billion, the central bank said in a statement in Manila yesterday. Remittances grew 11.1 percent in August.
--Editors: Andrew Janes, Simon Harvey
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