Peso rises on news of improving US economy, 2nd bailout for Greece

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11:38 PM February 22nd, 2012

By: Michelle V. Remo, February 22nd, 2012 11:38 PM

MANILA, Philippines—The peso inched up slightly on Wednesday amid a market that has been weighing the impact of latest oil disputes between Europe and Iran, the approval of the second bailout package for Greece, and indications of improving US economy, on their global economic outlook.

The local currency closed at intraday high of 42.62 against the US dollar, up by 4.5 centavos from the previous day’s finish of 42.665:$1.

Intraday low settled at 42.88:$1. Volume of trade amounted to $1.156 billion from $1.294 billion previously.

Traders said investors welcomed the decision of the European Union to approve the second bailout package worth $170 billion for Greece that helped avoid a default on its maturing obligations.

Nonetheless, traders said, investors acknowledged that the latest rescue was just one of the measures needed to put an end to the lingering debt woes of the Euro zone.

Market players also said estimates showed that the sale of previously owned homes in the United States improved in January and served as a source of optimism among portfolio fund investors.

Nonetheless, the latest dispute between Iran and Europe, feared to cause oil-supply disruptions, has been dampening sentiments, they said.

European countries have decided to ban oil imports from Iran starting July as a means to pressure the latter to end its alleged nuclear program. Iran, however, has denied it is creating nuclear weapons.

Some investors are concerned that the dispute may eventually cause oil-supply problems in the months ahead, according to market investors.

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