Peso rises over good news on US economy, eurozone debt handling

MANILA, Philippines—The peso improved on Monday amid prospects of a gradual recovery of the US economy and efforts to contain the debt crisis in the eurozone.

The local currency closed at 43.775 against the US dollar, up by 16.5 centavos from 43.94:$1 on Friday.

Intraday high hit 43.75:$1, while intraday low settled at 43.9:$1. Volume of trade increased to $1.21 billion from $1.097 billion previously.

The appreciation of the peso, which was consistent with the movement of other emerging market currencies, came following reports that the Black Friday sales in the United States hit a record high, showing that purchasing power of American consumers has remained sufficient to aid the gradual recovery of the US economy.

Black Friday, the day after Thanksgiving, marks the start of the Christmas shopping season in the United States. During this day, retailers offer significant discounts and operate for longer hours.

The rise of the peso on Monday also came amid reports that European policymakers have been continuing efforts to address the debt crisis in the eurozone. Reports said officials have been mulling over the release of rescue funds for the debt-ridden eurozone that would be enough to insure 30 percent of the sovereign liabilities.

Traders said positive news about the US and eurozone economies lifted the outlook of investors on the global economy. They said the improved sentiment likewise beefed up risk appetite that prompted the investors to purchase more securities from emerging markets like the Philippines.

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