Peso rises on report of growing US services sector

MANILA, Philippines—The peso inched up on Wednesday as reports of growth in the services sectors of the United States somewhat lifted investor sentiment.

The local currency closed at 43.22 against the US dollar, up by 25.5 centavos from the previous day’s finish of 43.475:$1.

Intraday high hit 43.18:$1, while intraday low settled at 43.385:$1. Volume of trade amounted to $872.01 million from $915.56 million previously.

The appreciation of the peso, which came with the rise of other key Asian currencies, followed the release of news reports saying the US services sector grew by a faster clip in May than in April. The Institute for Supply Management Services Index rose to 53.7 in May from 53.5 the previous month.

Traders said investors considered the favorable report an indication that the US economy could post a more solid recovery this year than in 2011.

Traders said the risk appetite of fund owners improved, causing an increase in demand for emerging-market assets, such as peso-denominated stocks.

The Philippine Stock Exchange Index thus rose by 40.91 points to 4,966.58.