THE peso dropped for the fourth-straight day on Thursday as renewed worries about the health of the US economy prompted investors to shun riskier emerging-market assets and seek shelter in the dollar, traders said.

The local unit ended the session at 47.73 per dollar, its weakest finish since September 17, when it closed at 47.76.

Disappointing data on new home sales and durable goods orders in the US rattled Wall Street on Wednesday and heightened risk aversion in global markets.

“Players are still short-covering their long currency positions on renewed doubts over economic- recovery prospects in the US,” said DBS Bank currency strategist Philip Wee. With the “loss of momentum” in equity markets after strong gains in recent months, he said safe-haven currencies, such as the greenback and even the Japanese yen, have appreciated. With concerns about the US economy resurfacing, all eyes were glued to the US gross-domestic product figures expected to be released Thursday night.

But Wee said while he expected the third-quarter data to confirm the US exit from recession, “the market was skeptical that the US economy can recover without policy support.” The concern surrounds the eventual expiration of such stimulus programs as the tax-credit scheme for homebuyers and the Federal Reserve’s purchases of mortgage-backed securities, he said.

“While there are less W-shaped naysayers this time around, the prospect of a slow recovery is enough to encourage players to book profits ahead of November, the end of the financial year for many US financial firms,” he said in a note.

Against this backdrop, Wee said the dollar’s rise should not be viewed as a change in the overall direction.