AP FILE PHOTO
MANILA, Philippines—The peso strengthened on Thursday following the release of a report showing that the Philippines significantly improved its ranking on global competitiveness amid a favorable economic performance and the government’s promise of good governance.
The local currency closed at its intraday high of 41.87 against the US dollar, up by 10.5 centavos from the previous day’s finish of 41.975:$1.
Intraday low settled at 41.95:$1. Volume of trade amounted to $804.08 million from $835.3 million previously.
The rise of the peso came after the release of the results of this year’s global competitiveness survey by the World Economic Forum (WEF). According to WEF’s report, the Philippines ranked 65th in this year’s survey of 144 countries, up by 10 notches from 75th in 2011.
The 10-notch improvement in the country’s ranking this year followed a similar 10-notch leap registered last year from 85th in 2010.
Businesses were tapped to serve as respondents to the global survey, which evaluates competitiveness of countries based on various factors deemed influential in creating an environment good for doing business.
Traders said the positive report on the Philippines’ improved global competitiveness ranking boosted the appetite of foreign investors for peso-denominated securities.
Meantime, traders said the rise of the peso was also partly due to a general upbeat market sentiment on Thursday due to the belief the European Central Bank may be poised to inject money into the eurozone by buying government bonds.
Stimulus for the eurozone somewhat eased concerns over the effects of the Western region’s crisis on the global economy, thereby improving risk appetite, traders said.