Peso up by 16 centavosBy Michelle V. Remo
Philippine Daily Inquirer
MANILA, Philippines—The peso inched up on Tuesday as reports of an increase in manufacturing activities in the United States in September lifted investor sentiment.
The local currency closed at 41.60 against the US dollar, up by 16 centavos from the previous day’s finish of 41.76:$1.
Intraday high hit 41.59:$1, while intraday low settled at 41.70:$1.
Volume of trade amounted to $915 million from $919.4 million previously.
The appreciation of the peso came with the rise of some other key Asian currencies. Traders said fund owners were encouraged by news reports showing that manufacturing in the United States picked up in September, the first time it did so since May.
The Institute for Supply Management’s index for manufacturing activity hit 51.5 points in September from 49.6 in August. An index of above 50 shows growth, while an index below 50 indicates contraction.
Traders said the report somewhat boosted hopes that the still lackluster global economy would improve.
The United States is a key export market for many developing economies like the Philippines. Signs of improvement in the US economy thus are taken as indications of improved future export earnings of the exporting countries.
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