Peso rises on news Greece likely to implement debt bailout plan
By Michelle V. RemoPhilippine Daily Inquirer
A woman uses an ATM machine outside Greece's Eurobank at the northern port city of Thessaloniki, Greece, on Wednesday, May 23, 2012. Greece's four biggest commercial banks will receive an euro 18 billion ( $23 billion) cash infusion from the European bailout fund. AP/Nikolas Giakoumidis
MANILA, Philippines — The peso inched up on the first trading day of the week amid improved investor sentiment resulting from latest political developments in Greece.
The local currency closed at 43.54 against the US dollar on Monday, up by 21.5 centavos from 43.755:$1 on Friday.
Intraday high hit 43.45:$1, while intraday low settled at 43.67:$1. Volume of trade amounted to $881.2 from $1.2 billion previously.
The appreciation of the peso and other emerging market currencies came following news reports saying Greece’s New Democracy, a political party that has been supporting the implementation of the bailout plan for the debt-ridden country, led in the recent polls. This gave rise to expectations that the party would soon lead the Greek government following next month’s elections.
Traders said fund owners considered the news about Greece as good news. They said observation of the bailout plan for Greece would help solve its woes and prevent worsening of the Euro zone debt crisis.
They said the news on Greece somewhat lifted the risk appetite of investors, thereby boosting demand for emerging market securities.
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Tags: Business , business and finance , currencies , economy , Euro zone debt crisis , Foreign Exchange , Philippine peso , US dollar
