Peso weakens on EU, remittance data

The peso shed 12 centavos on Wednesday as eurozone data reflecting poor gross domestic product (GDP) and slower remittance growth dampened investor sentiment. A dollar fetched P41.2 when trades ended, compared to 41.08:$1 Tuesday. "The peso weakened because of weaker GDP data in eurozone and lower remittance growth," a trader said. A second trader said recent data "… support a strong dollar sentiment across the board." Reuters reported that Germany's economy grew by a mere 0.1 percent in the first quarter—weaker than forecast—while France entered a shallow recession after contracting by 0.2 percent in the first three months of the year. With growth in the largest economies in the eurzone bloc disappointing, expectations are that the eurozone countries could contract by more than the forecast of 0.1 percent, the news service noted. Bangko Sentral ng Pilipinas, meanwhile, reported cash remittances coursed through banks grew 3 percent to $1.749 billion in March, the slowest growth rate since the 2.8 percent posted in August 2009. — VS, GMA News