1. Analysts said the peso had weakened in part because companies with foreign debts were buying dollars to make quarterly interest payments and avoid foreign-exchange losses. 2. Argentine Brady bonds declined on investor concern that new Economy Minister Roque Fernandez would let the peso weaken, traders said. 3. As the risk faded that the peso would weaken and slash the value of their Philippine investments, foreign investors piled in. 4. As the peso weakens, those loans will cost more in peso terms to repay. 5. At the same time, the peso weakened against the dollar on concern that the attacks will discourage foreign investment into the Mexican economy. 6. Bangko Sentral ng Pilipinas Gov. Gabriel Singson said yesterday he may raise bank reserve requirements if the peso weakens further, reducing the cash available for loans to companies. 7. Banks fell on concern their debt payments will rise if the peso weakens. 8. Because fuel prices are set by the government, oil companies are reimbursed when crude costs rise or the peso weakens against the dollar. 9. Because fuel prices are set by the government, oil companies are reimbursed when petroleum costs rise or the peso weakens against the dollar. 10. A bank is long dollars -- a bet that the peso will weaken -- when its foreign-currency assets exceed liabilities. |