Bloomberg News

Philippine Peso Drops a Third Day on Export Concern; Bonds Rise

January 09, 2012

Jan. 9 (Bloomberg) -- The Philippine peso declined for a third day before a government report tomorrow that may show exports shrank for a seventh month. Government bonds rose.

Overseas shipments dropped 7 percent in November from a year earlier, according to the median estimate of economists in a Bloomberg News survey, as Europe’s debt crisis sapped global demand for the nation’s goods. The euro slid to an 11-year low against the yen before German Chancellor Angela Merkel and French President Nicolas Sarkozy meet today for the first time in 2012 as they seek to come up with a master plan for rescuing the single currency over the next three months.

“The peso tracked the move in the euro and Asian currencies,” said Lito Mercado, head of trading at Rizal Commercial Banking Corp. in Manila. “A weaker euro signals concern about cooling global growth.”

The peso fell 0.4 percent to 44.315 per dollar as of 10:06 a.m. in Manila, according to Tullett Prebon Plc. That’s the weakest level since Dec. 15. The Bloomberg-JPMorgan Asia Dollar Index, which tracks the region’s 10 most-traded currencies excluding the yen, dropped 0.3 percent.

The yield on the Philippine government’s 5.75 percent bonds due October 2021 declined 2.5 basis points, or 0.025 percentage point, to 5.20 percent, according to prices from Tradition Financial Services.

--Editors: Simon Harvey, Andrew Janes

To contact the reporter on this story: Lilian Karunungan in Singapore at lkarunungan@bloomberg.net.

To contact the editor responsible for this story: James Regan at jregan19@bloomberg.net.


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