Peso unchanged at 42.26 to dollar
By Michelle V. RemoPhilippine Daily Inquirer
MANILA, Philippines—After appreciating in mid-day trade, the peso closed at the same exchange rate as Friday’s, as favorable development in Greece somewhat boosted investor sentiment although their concerns over an uncertain global economic picture remained.
The local currency closed at 42.26 against the US dollar, the same as Friday’s finish.
Intraday high hit 42.10:$1, while intraday low settled at 42.26:$1. Volume of trade amounted to $782.2 million from $959.38 million previously.
The movement of the peso came after results of Greek elections held Sunday favored the New Democracy Party, which has been supporting austerity measures for Greece. The party got majority of the seats in the Greek Parliament.
Traders said the results of the Greek elections have eased fears that Greece might leave the eurozone, default on its loans, and cause more serious volatility in global financial markets.
Prior to the elections, there were concerns that debt-ridden Greece may decide to leave the eurozone, leaders of which are pressuring Greece to implement highly unpopular austerity measures to address its debt problems. The measures earlier drew protests and criticisms from some groups, including left-leaning political parties.
Meanwhile, the Bangko Sentral ng Pilipinas welcomed the developments in Greece, saying news reports that could calm market jitters were important.
“The situation (in Greece) continues to unfold, but what is clear now is there has been some relief brought about by the elections on the financial markets,” BSP Governor Amando Tetangco Jr. told reporters on Monday.
He said the BSP, nonetheless, would remain watchful of developments in the eurozone to see whether current policies should be adjusted to keep the Philippine economy growing despite the turmoil in the Western region.
Tetangco said that following the favorable results of the Greek elections, capital markets would monitor whether Greece could successfully implement austerity measures and gradually ease its debt problems.
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Tags: Business , currencies , economy , Finance , Foreign Exchange , Philippine peso , US dollar
