Peso weakens to three-mo. low of 44:$1 as US devts weigh

By DANESSA O. RIVERA, GMA News

Published December 9, 2013 5:51pm

The peso on Monday weakened to a three-month low and broke the 44:$1 level as investors speculated that the Federal Reserve may taper its stimulus following better-than-expected US jobs data.

The local currency lost 18 centavos to 44.15:$1 from 43.97 Friday. This was the currency's weakest since closing 44.24:$1 on Sept. 9.

"We saw the peso breach the 44-level on the back of better-than expected US nonfarm payrolls and weak equities market," a forex trader at United Coconut Planters Bank told GMA News Online.

Last Friday, the US Labor Department said nonfarm payrolls increased by 203,000 new jobs in November – which was more than expected – while the jobless rate fell to a five-year low of 7 percent, Reuters reported.

On Monday, share prices on the Philippines Stock Exchange dipped in the absence of market-lifting news that prompted investors to cite the improved US jobs data as an excuse to sell positions earlier in the session.

"Some are expecting the taper to happen sooner, with some speculating that it may be announced in the next FOMC meeting," the trader said.

The Federal Open Market Committee, or FOMC, will meet Dec. 17 to 18 to discuss where the world's largest economy is headed for at this point in its recovery. – VS, GMA News

Tags: peso, dollar, currencies, forex