MANILA, Philippines—The peso rose on Wednesday as investors manifested risk appetite anew on the back of expectations of growing global liquidity.
The local currency closed at 40.625 against the US dollar, up by 11 centavos from the previous day’s finish of 40.735:$1.
Intraday high hit 40.61:$1, while intraday low settled at 40.695:$1.
Volume of trade amounted to $943.3 million from $1.16 billion previously.
Traders said central banks of major economies, led by the United States, would likely continue with their stimulus programs, particularly bond purchases.
The market expects a portion of the liquidity to spill over to emerging markets like the Philippines and to boost their currencies. This is boosting risk appetite for Asian currencies and instruments denominated in said currencies.