Peso up on EU, China resolve to boost growth

MANILA, Philippines—The peso inched up on Tuesday as pronouncements from the European Union and China that they have been considering measures to boost growth of their respective economies improved risk appetite of fund owners.

The local currency closed at P43.13 against the US dollar on Tuesday, up by 8 centavos from Monday’s finish of 43.21:$1.

Intraday high reached 43.05:$1, while intraday low settled at 43.15:$1. Volume of trade amounted to $752.86 million from $889.7 million previously.

The appreciation of the peso on Tuesday came following statements from Germany’s finance minister, Wolfgang Schaeuble, that the European Union would consider all feasible measures that could potentially boost growth of the eurozone as it struggles with a prolonged debt crisis.

On Monday, Chinese Premier Wen Jiabao said the Chinese government would focus on maintaining the strong growth momentum for the world’s second-biggest economy.

Traders said the commitment to boost growth in the eurozone and China, two of the biggest export markets for many emerging economies like the Philippines, lifted the outlook for global economic growth and raised appetite for emerging market assets, such as peso-denominated ones, at least for the day.