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MANILA, Philippines—The peso inched up on Tuesday over speculations the US Federal Reserve and the European Central Bank might implement stimulus measures to boost the US and eurozone economies.
The local currency closed at its intraday high of 41.72 against the US dollar, up by 21 centavos from Monday’s finish of 41.93:$1.
Intraday low settled at 41.92:$1. Volume of trade amounted to $807.52 million from $985.10 million previously.
Traders said the appreciation of the peso against the greenback, which came together with the rise of other key Asian currencies, came as fund owners believed the US Fed and the ECB would signal intention to inject more funds into their respective jurisdictions to arrest anemic growth performances.
The board of the US Fed will meet on August 1, while that of the ECB will meet on August 2. Traders said investors have been widely expecting the US Fed and the ECB to announce their intention to stimulate growth of the two biggest economic regions of the world following the meetings.
Traders said prospects for growth stimulus somewhat lifted the outlook on the global economy, thereby increasing risk appetite of investors. As such, demand for emerging market assets, such as peso-denominated securities, rose.