Peso rises over report of 5.9% GDP growth in Q2

The peso closed at 42.23 against the US dollar on Thursday, Aug; 30, 2012,, up by 11.5 centavos from the previous day’s 42.345:$1. AFP FILE PHOTO

MANILA, Philippines—The peso rose on Thursday to wipe out its loss the previous day as the market reacted positively to a government report saying that in the second quarter, the Philippine economy grew by another robust pace.

The local currency closed at 42.23 against the US dollar, up by 11.5 centavos from the previous day’s 42.345:$1.

Intraday high hit 42.23:$1, while intraday low settled at 42.43:$1. Volume of trade amounted to $1.033 billion from $767.4 million previously.

Traders said fund owners welcomed the report that the Philippines has been able to stay on track of hitting, if not exceeding, the government’s full-year growth target of 5 to 6 percent.

The National Statistical Coordination Board reported Thursday that the economy, measured in terms of gross domestic product, grew by 5.9 percent in the second quarter from a year ago. This followed the annual growth rate of 6.3 percent in the first quarter.

BSP Governor Amando Tetangco Jr. said the favorable report on the economy’s performance would naturally result in market optimism.

“The better-than-expected GDP growth at 5.9 percent should boost market confidence that the economy will be able to grow by closer to the higher end of the current government target of 5 to 6 percent,” Tetangco said.

“This should also support financial markets, including the spot foreign exchange market,” Tetangco added.