MANILA, Philippines—The peso strengthened on the first trading day following the long weekend as some investors finally searched for more yields after the lingering debt crisis in the eurozone had kept them at the sidelines.
Traders said that emerging markets like the Philippines would likely perform much better than advanced economies, and so any interest for portfolio investments amid an uncertain global economic condition would still favor the former.
The local currency closed at 43.15 against the US dollar, up by 12.5 centavos from Friday’s finish of 43.275:$1
Intraday high hit 43.08:$1, while intraday low settled at 43.25:$1. Volume of trade amounted to $1.055 billion from $1.23 billion.
Traders said investors have remained concerned about the eurozone, especially given latest projections that the region might fall into a mild recession in 2012. Nonetheless, fund owners who wish to generate yields are directed toward emerging markets that are seen to post decent growth rates in 2012, according to investors.