MANILA, Philippines—The peso inched up on Thursday as reports of improved corporate earnings lifted sentiment on the Philippine economy.
The local currency closed at 42.17 against the US dollar, 3 centavos from the previous day’s finish of 42.20:$1.
Intraday high hit 42.165:$1, while intraday low settled at 42.245:$1. Volume of trade reached $784.95 million from $934.15 million previously.
Traders said the appreciation of the peso on Thursday was driven mainly by strong appetite for peso-denominated stocks as manifested by an increase in the Philippine Stock Exchange Index 71.57 points to 5,300.41.
The market players said reports of positive earnings reports by various publicly listed firms helped boost appetite for stocks and improved the general outlook on the Philippine economy.
Meanwhile, the appreciation of the peso also came after pronouncements from experts that the eurozone crisis would not have a significant dampening impact on the Philippines and other emerging Asian economies.
Asian Development Bank president Haruhiko Kuroda said on Wednesday that the impact of the eurozone problems on Asia would not be serious.
On a similar tune, Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. has said the central bank is keeping its forecast of a 5-percent growth in remittances to the Philippines this year, adding that the eurozone problem is not seen to harm remittances.
Remittances are a closely watched indicator as it significantly fuels household consumption and thus economic growth in the Philippines.