Peso inches up on improving US, China manufacturing outputs

MANILA, Philippines—The peso inched up on Wednesday as reports of improving manufacturing output of the United States and China lifted the outlook of investors on the global economy.

The local currency closed at 42.20 against the US dollar, up by 0.5 centavo from Monday’s finish of 42.205:$1 (Tuesday was a non-working holiday).

Intraday high hit 42.12:$1, while intraday low settled at 42.21:$1. Volume of trade amounted to $934.15 million from $934.65 million previously.

The appreciation of the peso, which mirrored the movement of other key Asian currencies, came amid reports that production by the manufacturing sectors of the United States and China have been on the rise.

Traders said investors deemed these reports as an indication that the global economy would have a more solid growth this year, after the lackluster performance of the United States and the eurozone dragged global growth in 2011.

Improved sentiment for the global economy has also increased investors’ risk appetite, thereby purchasing more stocks and other securities from emerging Asian markets like the Philippines, they said.