Peso goes up as investors buy PH stocks

MANILA, Philippines—The peso slightly inched up on Thursday even as other key Asian currencies dropped following the failure of concerned Greek officials to agree on a debt-easing measure required for the country to secure a bailout fund.

The local currency closed at 42.18 against the US dollar, up by 3.5 centavos from Wednesday’s finish of 42.215:$1.

Intraday high hit 42.08:$1, while intraday low settled at 42.33:$1. Volume of trade amounted to $1.518 billion from $1.33 billion previously.

Foreign exchange markets in Asia saw some currencies declining after investors were disappointed by reports that concerned officials failed to agree on proposed pension cuts in Greece. An agreement is needed for the country to secure financial assistance to help address Greece’s debt woes.

The peso, nonetheless, appreciated slightly as some yield-seeking investors bought Philippine stocks amid a still relatively favorable outlook on emerging Asian economies, traders said.

The Philippines grew by 3.6 percent in 2011, slower than the 7.6 percent registered the previous year but was faster than the growth rates of many advanced economies, including the United States and those from the Euro zone that grew by less than 2 percent.

The Philippine government said the domestic economy would grow by a faster rate of between 5 and 6 percent this year.