Peso up at end of trading week

AFP FILE PHOTO/ROMEO GACAD

MANILA, Philippines–The peso strengthened on the last trading day of the week as European leaders agreed on various measures to help ailing banks in the euro zone.

The local currency closed at its intraday high of 42.12 against the US dollar on Friday, up by 22 centavos from 42.34:$1 on Thursday.

Intraday low settled at 42.45:$1. Volume of trade amounted to $1.154 billion from $980.08 million previously.

The appreciation of the peso, which came together with the rise of other key Asian currencies, came about following a meeting among European leaders in Brussels. Traders said the markets seemed to be pleased with the measures agreed upon during the meeting.

European leaders agreed to use the planned European bailout fund to directly help ailing banks in the Euro zone, led by those based in economically troubled Spain. This means the assistance to be extended to banks will not be charged as debts of concerned governments.

Traders said the result of the meeting held Thursday in Brussels somewhat eased concerns over potential spillover effects of the troubles of banks in the Euro zone. Consequently, they said, fund owners had higher appetite for emerging-market securities, such as peso-denominated ones.