Peso, Asian currencies rise on reports of US firms’ improved earnings
MANILA, Philippines—The peso, together with other emerging Asian currencies, rose on Wednesday as improved earnings of publicly listed US companies raised hopes the world’s biggest economy would post a firmer recovery from the latest turmoil.
The local currency closed at its intraday high of 42.71 against the US dollar, up by 12 centavos from the previous day’s finish of 42.83:$1.
Intraday low settled at 42.82:$1. Volume of trade improved to $983.7 million from $922.215 million previously.
Traders said the appreciation of the peso as well as other emerging market currencies in the region followed the release of latest quarterly reports on US company earnings. Reports said Coca Cola, IBM and Apple are just some of the firms that reported better earnings in the last quarter.
The favorable earnings report elicited hopes that employment and overall economic condition in the United States would improve in the months ahead. If the US economy indeed improves, emerging countries like the Philippines are expected to benefit as well, such as in terms of higher earnings from its exports to the US.