The Philippine peso dropped toward a four-week low and stocks declined on concern Ireland will need emergency aid to bail out its banks. Local-currency bonds fell. The currency has lost 3.3 percent since Nov. 4 as overseas investors sold more Philippine shares than they bought in six of the seven trading days up to Nov. 15. Ireland is negotiating with the European Union and International Monetary Fund for aid to shore up the state’s finances and boost capital for the country’s banks, European Union Economic and Monetary Affairs Commissioner Olli Rehn said yesterday. “There’s a continued selloff in the equities market in relation to profit-taking and credit uncertainties in the euro zone,” said Lito Biacora, vice president of the treasury department at Bank of the Philippine Islands in Manila. “The bias right now is toward some weakness in the peso and Asian currencies.” The peso fell 0.5 percent to 43.945 per dollar as of the 4 p.m. close of trading in Manila, according to prices from inter- dealer broker Tullett Prebon Plc. It is the second-worst performer in the region outside Japan this month. Markets were closed yesterday for a public holiday. Bangko Sentral ng Pilipinas will keep its benchmark interest rate at 4 percent at a policy meeting tomorrow, according to all 16 economists surveyed by Bloomberg. The government may boost borrowing from the domestic market next year, Deputy Treasurer Eduardo Mendiola said. It may start a planned peso bond exchange as soon as next week, he said. The yield on Philippine four-year bonds climbed to a one week high. The yield on the 6.25 percent note due January 2014 rose 10 basis points to 4.20 percent, according to Tradition Financial Services. To contact the reporter for this story: Karl Lester M. Yap in Manila at kyap5@bloomberg.net. To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net.

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