Peso rises on news of Japan’s bond purchases

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MANILA, Philippines—The peso inched up on Thursday amid reports the Japanese central bank would push through with its intended stimulus program.

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.

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  • http://profile.yahoo.com/AND7MQ5FERICDOIAUW56RYT45A tower_of_power

    Are our regulators that stu…d? Bumili ng bopnds ang Japan … nagaapreciatge ang Peso … hahahaha … hindi ba nakikita ng mga regulators dyan sa Banko Central na yan talaga an g gusto mangyari ng Japan … ang pataasin ang Peso? If you fall prey into the traps laid by foreign investors …. you get an award!!!

  • malek_abdul

    Its high time for the Philippines to pay its foreign debt. Dispose off the reserved dollars para tumaas uli ang exchange rate. Mag-iipon na naman ang gobyerno ng dolyar para sa foreign currency reserve. In time pag nakaipon uli ng dolyar pwede na naman palakasin ang piso. That is called “Give and Take” between OFWs/Exporters and the government.

  • parefrank

    Peso rises “on reports” that the japanese CB will pour money into the japanese economy. What has this to do with the value of the philippine currency?

  • parefrank

    The funny thing is that always the peso rises on foreign matters, not
    because of positive matters in the PH economy That is typical for money
    speculation and BSP allows, even participates. They only intervene a bit
    if changes are too abrupt and would show that it is speculative. The
    victims are the consumers and the OEW families. Thanks to Noy;s Pro Poor
    Policy.
    But it brings the dollar remittances cheap in pesos, and that if good for the administration which has to spend billions for election propaganda. That is more important than the rising prices for the dumb voters.

  • bogli_anakdami

    if the forex keep going down, i could never repay bombay’s payb/siks…

    nakupo… habambuhay akong magku-kudkod ng unidoro para makabayad sa utang at para masustentuhan ko ang bisyo ng aking ‘sang tambaks na palamunins…

    ibalik ang aking idolo-bigotilyo-iyutero prez gung gong erap!!!  kc, forex eh $1:Pph60…

    • catalansbarce

      HA, HA, HA,.. Pards, kailan kayo tumino ang mga comments mo dito?

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