Peso rises anew over heartening news from US, China

Various peso notes are displayed at a bank in Manila on December 16, 2011. AFP PHOTO/TED ALJIBE

MANILA, Philippines—The peso inched up again on Wednesday as reports of improving employment data in the United States and Chinese government’s commitment to support small businesses lifted investor sentiment.

The local currency closed at 43.646 against the greenback, up by 22.4 centavos from the previous day’s finish of 43.87.

Intraday high hit 43.645:$1, while intraday low settled at 43.72:$1. Volume of trade amounted to $753.91 million versus $854.522 million previously.

Traders said the appreciation of the peso, which came together with the rise in other Asian currencies, was due to the slightly improved outlook on the global economy, following release of favorable reports.

The rise of the peso came following the release of data showing rising payrolls in some states in the world’s biggest economy.

Moreover, the Chinese government has vowed to provide financial support to small businesses to avoid a hard landing amid concerns of overheating in China.

Traders said the reports somewhat increased risk appetite of investors, thereby raising demand for emerging market securities, such as those from the Philippines.