Latest Stories

Peso rises on news of US budget deal



MANILA, Philippines—The peso strengthened by 19 centavos on the first trading day of the year as the market cheered an agreement among American lawmakers that would prevent a fall of the US economy from the so-called “fiscal cliff.”

The local currency closed at 40.86 against the US dollar, up from the finish of 41.05 on Dec. 28, the last trading day of 2012.

Intraday high hit 40.85:$1, while intraday low settled at 41:$1.

Volume of trade amounted to $931.8 million from $677.3 million previously.

The appreciation of the peso came as fund owners manifested stronger risk appetite and demanded more emerging-market assets, including peso-denominated ones. The greater interest for the portfolio assets came following reports that US lawmakers have come up with much-needed amendments to laws that were supposed to have taken effect on Wednesday and if left intact, would have significantly and adversely affected the US economy.

Since the US economy is a key export market, such as for Philippine-made goods, and is home to many migrant workers, its recession could cause a drag on the performance of the Philippines and other economies

The laws that were supposed to have taken effect required steep increase in taxes of Americans and substantial cuts in government spending.

The tax hikes and spending cuts were severe, according to consensus, and could push the world’s biggest economy into recession.

Under the deal struck by US lawmakers, the tax hike covers only American earning at least $400,000 a year instead of the originally proposed $250,000.

Moreover, the scheduled spending cuts were deferred for two months, within which lawmakers would deliberate further on what more prudent measures to do to address its budget deficit.

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: business and finance , currencies , economy , Foreign Exchange , Philippine peso , Philippines , US dollar , US economy , US fiscal cliff , US fiscal deal

  • kilawin

    a  strong peso means a strong purchasing power of common Filipinos…..I hope one day we could live as the same standards as developed countries..

  • TagaMlang


  • PinasK0ngMahal

    dapat fuel price roll back na…para roll back na rin pamasahe…ba’t parang wala pa ring balita ng fuel price roll back…

  • dxdaistar

    naku, tataas pa ang peso? di bababa na presyo ng mga imported products?

  • eyeshield

    malakas nga ang Pinas ngayon..ganun din ba kaya ang buying power ng peso kahit tumaas na ang palitan nito sa dollar?..lumiliit na value ng remittance ng mga OFW. :( 

Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • LPA enters PH, to bring rains and thunderstorms
  • Sing-along saint: Showbiz world gets papal inspiration
  • Two-thirds of underwater search done, no sign of MH370
  • S. Korea prosecutors turn to mobile app for ferry probe
  • 31 dead in Holy Week incidents—NDRRMC
  • Sports

  • Reigning champs Miami open playoffs with win
  • Spurs subdue Mavericks in playoff opener
  • Wawrinka beats Federer to win Monte Carlo Masters
  • Ageless Hopkins pitches 50-50 Mayweather deal
  • Goodbye MGM, Las Vegas for Pacquiao?
  • Lifestyle

  • Miss America: Don’t suspend teen over prom invite
  • Transitions and resurrection in the performing arts
  • ‘Archaeology tour’ of Cebu’s heritage of faith
  • Historic Fort Bonifacio tunnel converted into a septic tank
  • ‘Imports’ from London, and play of the year
  • Entertainment

  • Discovery network cancels Everest jump
  • ‘Captain America’ stays strong atop US box office
  • Easter musings
  • Solenn in shorts
  • Unmerry mix of attention-calling moves on ‘Mini-Me’ TV tilts
  • Business

  • Oil prices down in quiet Asian trade
  • Asian shares mixed in holiday-thinned trade
  • BDO seen keen on bidding for Cocobank
  • Bataan freeport investment pledges up 1,302%
  • Golden Week
  • Technology

  • PH has slowest internet in Southeast Asia
  • Nintendo’s trailblazing Game Boy marks 25th anniversary
  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Opinion

  • Gigi’s home
  • Palace stonewalls on MRT inquiry
  • Couple of things too
  • There is plenty of water behind Wawa Dam
  • Triduum thoughts of a young boy
  • Global Nation

  • Obama on mission to quiet Asia skeptics
  • Search for Etihad passengers launched
  • Japan presents $57-B ‘dream plan’ to solve Metro congestion
  • Tim Tebow’s charity hospital in Davao seen to open in 7 months
  • OFW died of Mers-CoV in Saudi Arabia, says family
  • Marketplace