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Peso rises on reports of Japan’s economic stimulus

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Peso rises on reports of Japan’s economic stimulus

/ 09:34 PM October 23, 2012

AFP FILE PHOTO

MANILA, Philippines—The peso rose on Tuesday as investors speculated that the central bank of Japan would inject more funds to stimulate growth of the Japanese economy, a move that could spur demand for emerging-market assets.

The local currency closed at 41.315 against the US dollar, up by 7.5 centavos from the previous day’s finish of 41.39:$1.

Intraday high hit 41.29:$1, while intraday low settled at 41.335:$1.

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Volume of trade amounted to $690.45 million from $738.65 million previously.

The appreciation of the peso, which came with the rise of other key Asian currencies against the greenback, came as some investors took the view that the Bank of Japan will inject more funds, such as through bond purchases, to spur the lackluster growth of the Japanese economy.

Traders expect that portions of the funds to be injected, if indeed there would be, will be used by holders to buy emerging-market assets and thus cause rise of Asian currencies in the weeks or months ahead. Consequently, they said, demand for such assets actually rose as yield-seeking investors took advantage of potential income opportunity.

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TAGS: business and finance, currencies, economic stimulus, economy, Foreign Exchange, Japan’s economy, Philippine peso, US dollar
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