Peso inches up as EU nations vow to resolve debt crisis

MANILA, Philippines—The peso strengthened in the first trading day of the week as the pledge of European leaders to stem the crisis in the eurozone boosted risk appetite of fund owners for emerging market securities.

The local currency closed at 43.39 against the US dollar on Monday, up by 15 centavos from 43.54 on Friday.

Intraday high hit 43.35:$1, while intraday low settled at 43.48:$1. Volume of trade amounted to $931.65 million from $880.67 million previously.

The appreciation of the peso came with the statement from European Union leaders that banks in the eurozone, exposed to the debt crisis, would be recapitalized and that Greece would be given further assistance to address its debt woes.

Traders said reports indicating a more solid solution for the debt crisis in the eurozone somewhat lifted spirits of investors, who were prompted to invest in emerging market securities, such as those issued from the Philippines.

Market players said that in times of uncertainty, investors normally liquefy their assets and hold on to their dollars. On the other hand, reports giving better outlook on the global economy encourage fund owners to be more risk takers and buy emerging market assets.