Quantcast

Peso rises as Japan’s central bank announces aggressive stimulus

By |

MANILA, Philippines—The peso climbed on Tuesday as the announcement by Japan’s central bank that it would implement an aggressive stimulus measure lifted appetite for some emerging market assets.

The local currency closed at 40.61 against the US dollar, up by 9 centavos from the previous day’s finish of 40.70:$1.

Intraday high hit 40.585:$1, while intraday low settled at 40.71:$1.

Volume of trade reached $1.207 billion from $579.5 million previously.

The Bank of Japan has announced it will implement an open-ended purchase of assets starting 2014 in an attempt to lift the anemic Japanese economy.

Traders said portion of the liquidity to be injected by the Japanese central bank might go to emerging markets as holders use the money to buy financial instruments offshore.

The expectation of higher demand for emerging market assets and, therefore, of appreciation of emerging-market currencies has lifted demand for assets in the region, traders said.

Efforts to boost the lackluster Japanese economy also are a welcome development for fund owners who look for income opportunities arising from better global economic outlook.


Follow Us







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.



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
Advertisement
Advertisement
Marketplace