Philippine Peso Halts Four-Day Advance on Slowdown Concern

The Philippine peso halted a four-day advance on concern global economic growth will slow as Europe crimps spending to resolve its debt crisis. Bonds were steady.

Gross domestic product rose less than analysts estimated in the third quarter, climbing 3.2 percent from a year earlier, a Nov. 28 government report showed. The median estimate in a Bloomberg News survey was for growth of 4.1 percent. Italian Prime Minister Mario Monti will lobby parliament to support a 30 billion-euro ($40 billion) package of austerity measures to trim the euro-region’s second-biggest debt.

“Although GDP growth was lower than expected, it’s secondary to what’s happening in Europe,” said Rafael Algarra, executive vice president at Security Bank Corp. “The market is waiting for more impetus from the European situation.”

The peso closed at 43.272 per dollar in Manila, compared with 43.270 at the end of last week, according to Tullett Prebon Plc. The currency advanced 1.6 percent in the Nov. 28-Dec. 2 period, the first weekly advance since October.

The yield on the government’s 12.25 percent notes due October 2014 was little changed at 3.6 percent, according to the noon fixing prices from the Philippine Dealing & Exchange Corp.

Inflation may have slowed to 4.9 percent last month, from 5.2 percent in October, according to the median estimate of economists in a Bloomberg News survey before a government report tomorrow.

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

To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net.

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