Peso moves up over news of rising liquidity overseas, more hot money

AFP FILE PHOTO

MANILA, Philippines — The peso inched up on Thursday, amid expectations rising liquidity offshore could bring in more foreign portfolio flows to the country.

The local currency closed at 41.22 against the US dollar, up by 3 centavos from the previous day’s finish of 41.25:$1.

Intraday high hit 41.20:$1, while intraday low settled at 41.39:$1.

Volume of trade amounted to $1.09 billion from $859.3 million previously.

The rise of the peso came amid expectations the Japanese central bank would inject more liquidity to boost the Japanese economy and solve its problem on deflation.

Stimulus measure in Japan is seen to fuel demand for emerging-market assets, including peso-denominated ones. An improvement in the Japanese economy is also seen to benefit exporting countries like the Philippines.

Traders said growing global liquidity and favorable outlook on the Philippine economy continue to provide support to the peso.