Peso practically unchanged amid news of declining US unemployment

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07:50 PM May 6th, 2013

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By: Michelle V. Remo, May 6th, 2013 07:50 PM

MANILA, Philippines — The peso moved sideways on the first trading day of the week as financial markets welcomed the improving employment situation in the United States and as the Philippine Stock Exchange Index corrected from Friday’s historic high.

The local currency closed at 40.915 against the US dollar on Monday, down by half a centavo from Friday’s finish of 40.91:$1.

Intraday high hit 40.82:$1, while intraday low settled at 40.93:$1.

Volume of trade amounted to P976 million from P997.1 million previously.

The peso’s close came after the release of reports that US unemployment rate dropped to a four-year low of 7.5 percent in April.

Traders said the report lifted outlook on the global economy and was believed to increase risk appetite of investors.

The closing of the peso on Monday, however, likewise came with the correction of the Philippine Stock Exchange Index, which posted a new high on Friday and which has registered one of the fastest growth rates among in Asia.

The correction came amid analysts’ view that peso-denominated stocks have become one of the most expensive in Southeast Asia.

After registering a new high beyond the 7,200 mark on Friday, the PSEi closed at 7,170.65 on Monday, down by 44.70 points.

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