Peso rises on reports of more economic stimuli in biggest economiesBy Michelle V. Remo
Philippine Daily Inquirer
The local currency closed at 43.16 against the US dollar, up by 6 centavos from the previous day’s finish of 43.22:$1.
Intraday high hit 43.04:$1, while intraday low settled at 43.22:$1. Volume of trade amounted to $1.084 billion from $872 million.
The appreciation of the peso and other key Asian currencies came following reports saying European monetary officials are prepared to implement more stimulus measures in case the lingering debt crisis in the eurozone dampens growth in the region.
The rise in Asian currencies also came after reports saying the US Federal Reserve would be open to implement accommodative policies to support growth of the United States.
Traders said consideration of further stimulus measures in Europe and the United States somewhat lifted outlook of investors on the global economy and their appetite for emerging-market assets, such as those denominated in pesos.
Traders also said the report that China delayed the implementation of stricter capital requirements for banks in the country was also favored by the capital markets. Traders said the delay meant banks would have more resources to lend and help prevent China, which had been posting robust growth rates the past year, from having a hard landing in 2012.
China was supposed to implement tighter capital rules this year, but decided to postpone the move to next year.
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