AFP PHOTO/ROMEO GACAD
MANILA, Philippines—The peso strengthened further on Tuesday as the European Central Bank’s unveiling of a new stimulus plan for the eurozone boosted appetite for emerging-market assets.
The local currency closed at 41.905 against the US dollar, up by 7.5 centavos from the previous day’s finish of 41.98:$1.
Intraday high hit 41.84:$1, while intraday low settled at 41.92:$1. Volume of trade amounted to $735.3 million from $861.7 million previously.
The European Central Bank has said it intends to buy short-term bonds issued by European governments, a move seen to help stimulate lackluster European economies.
Traders said the announcement over the weekend by the US Federal Reserve that it might implement another stimulus measure for the US economy as well as the latest news over the ECB’s bond-buying plan somewhat improved the outlook of investors on the global economy.
As a result, traders said, appetite for emerging market assets improved, thereby lifting the Asian currencies including the peso.