Peso, Asian currencies up over reports of better US manufacturing output

MANILA, Philippines—The peso, together with other Asian currencies, inched up on the first trading day of the week following reports of improved output by the US manufacturing sector.

The local currency closed at 43.065 against the US dollar, up by 11 centavos from Friday’s finish of 43.175:$1.

Intraday high hit 43.035:$1, while intraday low settled at 43.10:$1. Volume of trade rose to $879 million from $844.14 million previously.

Latest report on US manufacturing said the sector’s output accelerated in June, thereby supporting the view of a modestly improving US economy. Traders said this would have a positive impact on emerging Asian markets like the Philippines – the United States being one of their biggest export markets.

Traders also said the appreciation of the peso and other major Asian currencies on Monday was a lingering impact of the report last week about the move of Greece to pass an austerity measure, which includes tax hikes and spending cuts.

The austerity measure had to be passed by the Greek Parliament for the country to get a bailout package from the International Monetary Fund and the European Union. The bailout package was needed to make sure Greece would not default on its maturing obligations.

Traders said the passage of the measure somewhat eased concerns over the debt situation of Greece and lifted appetite for assets from emerging markets in general.