The peso ended an eight-day appreciation, dropping by 8 centavos on Wednesday as some investors shifted funds from emerging markets to invest in dollar-denominated assets.

The local currency closed at 43.77 against the greenback, down from Tuesday’s finish of 43.69.

Intraday high hit 43.73:$1, while intraday low settled at 43.84:$1. Volume of trade dropped to $922.77 million from $959.6 million previously.

Traders said the drop of the peso was consistent with the decline of other major Asian currencies. The currencies in the region fell as improving US macroeconomic indicators encouraged some investors to pull out funds from Asia to invest in instruments issued in the United States.

Reports said factory output in the United States grew at a faster-than-expected pace in November, while employment figures for the services and some other non-farm sectors were improving. [Read more...]