Peso up as efforts to fix Euro debt lift sentiments on global economy

MANILA, Philippines—The peso inched up on Tuesday as efforts to resolve debt woes in the Euro zone lifted sentiment for emerging markets in general.

The local currency closed at 43.25 against the US dollar on the second trading day of the week, up by 6.5 centavos from Monday’s finish of 43.315:$1.

Intraday high stood at 43.18:$1, while intraday low settled at 43.33:$1. Volume of trade amounted to P800.43 million, up from $582.5 million previously.

Traders said investors had been worried about the serious debt situation of countries in the Euro zone, but added that recent reports about plans to rescue debt-ridden countries somehow eased concerns of investors on the overall global economy.

In turn, their appetite for perceivably riskier instruments, particularly those issued from emerging markets like the Philippines, has somewhat improved, traders explained.

The appreciation of the peso on Tuesday followed reports that leaders of the European Union have been trying to come up with a package of financial aid to help rescue Greece. Moreover, the EU recently issued bonds, proceeds of which were meant to financially support other ailing member-countries, particularly Ireland and Portugal.