Peso moves up on news of improved US manufacturing output

MANILA, Philippines—The peso strengthened on Thursday as reports of higher manufacturing output in the United States and some other areas lifted investor sentiment across markets.

The local currency closed at 42.66 against the US dollar, up by 28.5 centavos from the previous day’s finish of 42.945:$1.

Intraday high hit 42.65:$1, while intraday low settled at 42.78:$1. Volume of trade amounted to $1.269 billion, up from $1.145 billion previously.

The appreciation of the peso, which resulted from increased investments in portfolio assets led by equities and which was consistent with the movement of other Asian currencies, came following reports of improved US manufacturing output in January.

Traders said the increase in the US factory output to its highest level in seven months, together with a rise in output in some European countries, turned dim outlooks on the global economy into positive.

The United States and Europe are two major export markets for emerging countries like the Philippines.