Peso down in fourth straight day on PSEi decline, US factory rebound

The peso ended the week on a four-day losing streak against the dollar Friday as fears that the US Federal Reserve would taper its -buying stimulus continued to haunt financial markets after Washington reported better factory output.

 

The local currency capped the week down 10.5 centavos to 43.86:$1 from 43.755 Thursday.

 

"Negative sentiment continue to be driven by Fed taper fears following positive data from the US," Nicholas Mapa, economist at Bank of the Philippine Islands, told GMA News Online.

 

"There was a general dollar mood in the Asian region," he added.

 

Reuters reported manufacturing activity and output rebounded in the US this month after hitting a one-year low in October, according to the preliminary US Manufacturing Purchasing Managers Index.

 

Adding to the local currency's weakness was the decline in the local stock market also due to Fed taper concerns on top of market expectations of the negative impact of Typhoon Yolanda on the economy, Mapa said.

 

The main PSEi, which registered its fifth successive day of decline, slipped by 38.05 points or 0.62 percent, ending the week at 6,084.84. – VS, GMA News