Peso steady amid uncertainties in US economy, favorable emerging markets

MANILA, Philippines—The peso moved sideways on Wednesday as investors weighed the impact of uncertainties in advanced economies and favorable macroeconomic developments in emerging markets like the Philippines.

The local currency closed at 42.935 against the US dollar, down by 2 centavos from the previous day’s finish of 42.915:$1.

Intraday high hit 42.84 to the dollar, while intraday low settled at 42.98:$1.  Volume of trade reached $697.72 million from $812.18 million previously.

The movement of the peso came amid pronouncements from the US Federal Reserve that further stimulus measures might be needed to accelerate growth of the world’s biggest economy as it has been suffering from sluggish recovery.

The prospect of stimulus sounded favorable for investors, but traders said the US economy has remained fragile, making it a major market concern.

BSP Governor Amando Tetangco Jr. said Wednesday morning in a forum that global economic growth would likely remain “unsteady,” but the Philippine government has implemented measures that would help the domestic economy stay on a growth trajectory.

These measures include regulations that have helped stabilize the financial sector and fiscal reforms that improve the government’s revenue collection and ability to pump prime the economy.