Peso rises on news of Japan’s bond purchases
The local currency closed at 40.635 against the US dollar, up by 3.5 centavos from the previous day’s finish of 40.67:$1.
Intraday high hit 40.60:$1, while intraday low settled at 40.645:$1.
Volume of trade reached $709.8 million from $715.2 million previously.
The appreciation of the peso, which came with the rise of other key Asian currencies, came as investors expected significant liquidity to flow to emerging markets over the short term.
Traders said such an expectation has been partly anchored on the plan of the Bank of Japan to boost the Japanese economy through bond purchases. Portions of the additional liquidity resulting from the asset purchases are expected to go to emerging markets like the Philippines in the form of investments in securities.
In its latest policy meeting, the Japanese central bank decided to push through with its asset purchase program to start in 2014.
Efforts to stimulate the Japanese economy, a key export market for goods coming from the Philippines and its neighbors, are seen to benefit economies of exporting countries as well.
Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of INQUIRER.net. We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.
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