MANILA, Philippines—The peso recovered on Wednesday as the negative sentiment resulting from the Euro zone debt crisis was somewhat offset by the still favorable fundamentals, such as the benign inflation, in the Philippines.
The local currency closed at 43.86 against the US dollar on Wednesday, up by 22 centavos from 44.08:$1 the previous day.
Intraday high hit 43.83:$1, while intraday low settled at 44.08:$1. Volume of trade amounted to $1.133 billion from $1.198 billion previously.
The appreciation of the peso came following the release of the latest inflation report. The National Statistics Office said inflation in September settled at 4.8 percent, placing the average for the first nine months of the year at 4.3 percent.
The government has set a goal of keeping inflation for the year at a range of 3 to 5 percent.
Traders said the market remained jittery about the situation in the Euro zone as this could further dampen growth of the global economy, and thus affect even better-performing Asian markets.
Nonetheless, traders say some investors continue to search for investment opportunities, and emerging markets like the Philippines are the best option for now.