Peso rises on news of declining oil prices

MANILA—The peso rose on Tuesday as global oil prices declined and eased inflationary concerns of investors.

The local currency closed at 42.83 against the US dollar, up by 14 centavos from Monday’s finish of 42.97:$1.

Intraday high hit 42.77:$1, while intraday low settled at 42.96:$1. Volume of trade amounted to $941.4 million from $907.64 million previously.

Traders said the rise of the peso, together with other key Asian currencies, came as global oil prices declined a bit, thus ending consecutive days of increase.

The increase in global oil prices days ago was blamed on the tension between Europe and Iran. The European Union decided it would ban oil imports from Iran to pressure the latter to end its nuclear program.

Reports that the European Central Bank (ECB) would infuse 470 billion euros to the EU economy also eased concerns over threats to the campaign for faster global economic growth in 2012, market players said.

The infusion will be the second one, following the 489-euro infusion done in December. The money is used to lend to European firms, which are expected to use the funds to invest in European government securities and thus help ease the region’s debt woes.