Peso leads appreciation of Asian currencies
MANILA, Philippines—The peso strengthened back to the 43-to-a-dollar territory, leading the appreciation of major Asian currencies on Wednesday, amid improved sentiment of investors over growth prospects for the global economy.
MANILA, Philippines—The peso strengthened back to the 43-to-a-dollar territory, leading the appreciation of major Asian currencies on Wednesday, amid improved sentiment of investors over growth prospects for the global economy.
The local currency closed at 43.965 against the US dollar, up by 24.5 centavos from the previous day's finish of 44.21. The latest close was also the strongest in three weeks.
Intraday high hit 43.955:$1, while intraday low settled at 44.1:$1. Volume of trade inched up to $1.11 billion from only $658.9 million previously.
Traders said the appreciation of the peso, consistent with that of other key currencies in the region, came about following release of favorable reports about the performance of the US manufacturing sector.
Manufacturing output in the United States grew in January to hit the fastest pace in over six years. Market analysts said the report has revitalized the risk appetite of investors. They said that amid favorable growth prospects, investors would be more willing to take risks, such as by purchasing instruments issued from emerging markets like the Philippines.
The United States is the largest export market for the Philippines and other developing Asian countries. A more solid recovery of the US economy from the recent turmoil, therefore, is seen to benefit exporting countries like the Philippines.
Traders said growth in output by the US manufacturing sector cemented earlier forecasts by multilateral institutions, including the International Monetary Fund, of sustained recovery of the global economy this year.
Market analysts said the optimism brought about by improved production by US manufacturers superseded the risk aversion created by the political tensions in Egypt.
Intraday high hit 43.955:$1, while intraday low settled at 44.1:$1. Volume of trade inched up to $1.11 billion from only $658.9 million previously.
Traders said the appreciation of the peso, consistent with that of other key currencies in the region, came about following release of favorable reports about the performance of the US manufacturing sector.
Manufacturing output in the United States grew in January to hit the fastest pace in over six years. Market analysts said the report has revitalized the risk appetite of investors. They said that amid favorable growth prospects, investors would be more willing to take risks, such as by purchasing instruments issued from emerging markets like the Philippines.
The United States is the largest export market for the Philippines and other developing Asian countries. A more solid recovery of the US economy from the recent turmoil, therefore, is seen to benefit exporting countries like the Philippines.
Traders said growth in output by the US manufacturing sector cemented earlier forecasts by multilateral institutions, including the International Monetary Fund, of sustained recovery of the global economy this year.
Market analysts said the optimism brought about by improved production by US manufacturers superseded the risk aversion created by the political tensions in Egypt.
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