Peso rises on news of improving consumer sentiment, house prices in USBy Michelle V. Remo
Philippine Daily Inquirer
MANILA, Philippines—The peso inched up on Wednesday following reports of improving consumer sentiment and house prices in the United States.
The local currency closed at intraday high 40.705 against the US dollar, up by 5 centavos from the previous day’s finish of 40.755:$1.
Intraday low settled at 40.76:$1. Volume of trade reached $649.96 million from $696.9 million previously.
Traders said the appreciation of the peso and other emerging market-currency came after foreign exchange markets were informed of the better consumer sentiment in February and the increase in prices of houses in the United States in December.
Reports said the index measuring US consumer sentiment rose to 69.6 percent in February from 58.4 percent in January. Moreover, the index for property prices in key cities in the United States were reported to have jumped year-on-year by 6.8 percent in December, the fastest pace registered since July 2006.
An improvement in US economic indicators helps boost outlook of investors on the global economy, thereby lifting appetite for some emerging-market currencies and assets.