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


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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  • Ben

    Growth in the Philippines is not driven by it`s own internal economic
    expansion, but by the speculative flow of hot money in the market. This money is
    just parked in the banks, instead of investing it to bank roll the PPP, put more
    factories and infrastructures especially to mitigate destructive floodings and sewerage system for cleaning up the
    polluted waters, highways and alternate road systems to relieve road congestions that are bursting to its seams delaying delivery of goods
    and services and increasing gas utilizations costing more for both the
    government and the private sectors.

    The lack of guiding policy to shepherd the
    new domestic industry of ethanol production for fuel use and now is in
    danger of losing out from smuggling and import subverting our own effort not to
    rely on fuel import, including the much awaited flood and traffic proof mode of
    transport, but delayed…the elevated north rail and south rail high speed mass system
    to expand further the Philippines economic activities by opening up new real estate for
    commercial, residential or industrial use, solving the deficit
    in school facilities, wrong directional policy of DECS/CHED/DOST supporting
    studies for exports instead of for the Philippine use, including in non-existence of research and
    development effort in the country.

    Unless those are in place already in a much aggressive way to get more people get a job, more taxes will be for the government to earn and reduce it`s
    deficit, then we expect to continue to grow pathetically below 5% GDP. Then we are not likely to reach the elusive goal of 8% GDP to help carry
    more families out of poverty and accelerate our technology based-domestically
    driven industrialization. But, up to now, PNoy`s promises are just making the
    filipinos salivate for a real change as he promised during the election, and looking like written in water and not written in
    a more permanent stone. PNoy`s term is now just less than 4 more years to go……

    Where are the PPP? Where are the High speed railway, where are the additional refineries for ethanol? Where are the infrastructures to mitigate floods, traffic and sewerage problem, how about the planned pipeline for the CNG….tsk, tsk nothing PNoy.

  • Ben

    The Swiss National Bank previously shocked markets by setting an exchange
    rate cap on the soaring franc to stave off a recession, discouraging investors
    anxious about flagging global growth from using the currency as a safe
    haven.Using some of the strongest language from a central bank in the
    modern era, the SNB said it would no longer tolerate an exchange rate below 1.20
    francs to the euro and would defend the target by buying other currencies in
    unlimited quantities.

    The Philippines must not allow it`s currency to go below P42 anymore….

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