Peso slumps to P47.85 on risk aversion

MANILA, Philippines - The peso Tuesday extended its losing streak against the dollar after investors avoided risky assets. The peso lost thirty-five centavos to close at P47.85 per dollar from Monday’s P47.50 finish. "There was region-wide risk aversion. The market was worried about [the possibility of a recession] in the region," said Security Bank Corp. Treasurer Rafael S. Algarra, Jr. Mr. Algarra said there was no single event that weighed down on Asian currencies. However, data that pointed to the possibility of weaker-than-expected economic growth in the region such as the substantial drop in exports of Singapore and Philippines, among others, roused fears of recession in the region. Market players are expected to test the P47.60-P48 range Wednesday. A trader said the peso is gearing towards the low side of the range. - BusinessWorld