Peso rises on news of US’ improved economic indicators

MANILA, Philippines—The peso inched up again on Tuesday amid hopes the global economy would recover faster this year as the United States registered improved economic indicators.

The local currency closed at 42.41 against the US dollar, up by 14 centavos from the previous day’s finish of 42.55 to $1.

Intraday high hit 42.38:$1, while intraday low settled at 42.635:$1. Volume of trade was up to $1.35 billion from $1.032 billion previously.

Traders said hopes that the US economy, which fell into recession in 2009, would recover by a faster pace this year fueled thoughts that emerging markets like the Philippines might post slightly better earnings in 2012, following the 2011 decline.

The US government earlier reported that the unemployment in the world’s biggest economy fell to 8.3 percent in January, the lowest level seen in three years.

The favorable employment news led to hopes Americans would increase their consumption, thus increase demand for imported products like those from the Philippines.