Peso strengthens on news of Greece’s austerity measures

Philippine peso closes at 42.44 to a dollar on Monday, February 13, 2012. AFP PHOTO

MANILA, Philippines—The peso strengthened together with other Asian currencies on Monday following the move of Greece to pass proposed austerity measures, which were required for it to get another bailout fund.

The local currency closed at 42.44 against the US dollar, up by 4 centavos from last Friday’s finish of 42.48:$1.

Intraday high hit 42.35:$1, while intraday low settled at 42.55:$1. Volume of trade amounted to $1.35 billion from $1.34 billion previously.

The appreciation of the peso came following reports that the Greek parliament finally passed highly unpopular austerity measures even amid strong protests from the public. Greece was required to pass those measures if it wanted to get another bailout support from the European Union.

Traders said another bailout package for Greece somehow gave the idea that the debt crisis in the eurozone could be contained, and any spillover effects on other economies, such as emerging Asian markets like the Philippines, would be minimized.

Traders said the developments in the euro zone have been affecting overall sentiment of investors on the global economy.