Peso gains on news of more home sales, higher corporate earnings in US
AFP FILE PHOTO
MANILA, Philippines — The peso inched up on Wednesday as reports of an increase in sales of residential properties and corporate earnings in the United States boosted sentiment of investors on the global economy.
The local currency closed at 41.285 against the US dollar, up by 4.5 centavos from the previous day’s finish of 41.33:$1.
Intraday high hit 41.259:$1, while intraday low settled at 41.38:$1.
Volume of trade amounted to $958.93 million from $1.38 billion previously.
The appreciation of the peso came following the release of reports showing that US home sales inched up by 1.5 percent in March from a year ago to 417,000 units.
Article continues after this advertisementAnalysts said the increase in home sales could indicate something positive about the US economy, a key export market for many emerging economies like the Philippines.
The rise of the peso and other emerging-market currencies likewise came with the onset of the corporate earnings-reporting season in the United States. Traders said favorable earnings of many publicly listed entities in the United States also boosted sentiment and, therefore, risk appetite.
