MANILA, Philippines—The peso inched up on Thursday as increase in interest rates in various countries in emerging Asia enticed investors to buy securities from the region, thereby lifting major Asian currencies.
The local currency closed at 43.39 against the US dollar, up by 5 centavos from the previous day’s finish of 43.44:$1.
Intraday high hit 43.35:$1, while intraday low settled at 43.46:$1. Volume of trade amounted to $638.6 million versus the $752.68 million previously.
Traders said the move of central banks in the region gave the impression among investors of an ongoing trend of rising interest rates in emerging Asia. As such, traders said, investors would like to make a position to earn from the higher yields moving forward.
Policy rates of central banks influence movement of commercial interest rates, such as interest rates on securities.
On Thursday, the central bank of Taiwan increased its policy rate by 0.125 percentage point to 1.75 percent.
In the case of the Philippines, the BSP hiked its key policy rates by 25 basis points last March 24.
China, India, South Korea, Thailand and Indonesia have also raised their policy rates.