Peso slightly up on possible stimulus measures in ChinaBy Michelle V. Remo
Philippine Daily Inquirer
MANILA, Philippines—The peso inched up slightly on Thursday as a slower inflation in China fueled speculations Chinese authorities would soon implement measures to stimulate the Chinese economy, a move that could benefit neighboring markets like the Philippines.
The local currency closed at 41.76 against the US dollar, up by 1 centavo from the previous day’s finish of 41.77:$1.
Intraday high hit 41.745:$1, while intraday low settled at 41.78:$1. Volume of trade amounted to $559.56 million from $681.78 million previously.
The minimal appreciation of the peso came amid expectation that the Chinese government might eventually implement measures to boost growth of China, a key export market for the Philippines and other emerging Asian economies.
With inflation slowing down, any stimulus measure is seen to accelerate the increase in consumer prices only to manageable levels.
Annual inflation rate in China decelerated to 1.8 percent in July from 2.2 percent in June.
China grew by 7.6 percent in the second quarter from a year ago, slower than the 8.1 percent registered in the first quarter.
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