Peso up on favorable economic reports from US, China

MANILA, Philippines—The peso moved together with other Asian currencies and appreciated on Thursday against the US dollar as news reports reaffirming the healthy pace of global economic recovery this year lifted sentiment of investors.

The local currency closed at 43.365 against the US dollar on Thursday, up by 12.5 centavos from the previous day’s finish of 43.49.

Intraday high stood at 43.345:$1, while intraday low settled at 43.43:$1. Volume of trade inched up to $1.078 billion from $1.022 billion previously.

Traders said the appreciation of the peso and regional currencies came following reports saying that the US Federal Reserve has stressed its favorable view on the US economy for 2011 and that China would implement measures to boost spending among the Chinese.

The United States and China serve as key export markets for the Philippines and other developing Asian countries.

Positive outlook on the United States and China, therefore, boils down to a favorable sentiment on exporting countries like the Philippines.

Market players said the reports reinforced the view among investors that Asia would continue to lead global economic growth despite shocks from outside, such as political tensions in the Middle East and North Africa where a significant portion of the world’s oil has been imported.