Peso rises with Aquino’s economic stimulus plan

MANILA, Philippines—The peso ended Wednesday’s trade stronger following the unveiling by President Aquino of the administration’s stimulus plan to counter the ill-effects of the global turmoil on the domestic economy.

The local currency closed at its intraday high of 43.405 against the US dollar on Wednesday, up by 6.5 centavos from the previous day’s finish of 43.47:$1.

Intraday high low settled at 43.63:$1. Volume of trade reached $1 billion from $1.08 billion previously.

The appreciation of the peso partially trimmed the losses on Tuesday, when the local currency depreciated by 11 centavos following reports of a 15-percent contraction in export earnings in August.

The sluggish performance of the country’s export sector, blamed on weak demand from the United States and the eurozone, forced the government to cut its economic growth forecast for this year from a range of 5 to 6 percent, to a range of 4.5 to 5.5 percent.

The United States and the eurozone serve as two of the biggest export markets for goods from the Philippines and other emerging markets.

But President Aquino said his administration has approved P72-billion additional spending for infrastructure and social services to help counter the ill-effects of the anemic global economy.

Traders said the stimulus plan somewhat lifted sentiment of investors on the country’s economic prospects.