AFP PHOTO/ROMEO GACAD
MANILA, Philippines—The peso rose on Wednesday following reports that the central bank of Japan raised its stimulus budget for boosting growth of the Japanese economy.
The local currency closed at 41.61 against the US dollar, up by 14 centavos from the previous day’s finish of 41.75:$1.
Intraday high hit 41.57:$1, while intraday low settled at 41.75:$1.
Volume of trade amounted to $1.02 billion, down from $884.6 million previously.
The appreciation of the peso, which reversed the depreciation registered the previous two days, came following the announcement by the central bank of Japan that it was raising its stimulus fund from 45 trillion yen to 55 trillion yen (about $700 billion).
Japan is a key export market for many emerging economies, including the Philippines.
Traders said the announcement of an increase in funds to fuel faster growth for the Japanese economy lifted sentiment of investors even for the emerging economies, thereby beefing up appetite for emerging-market assets.
The announcement by the Japanese central bank came following similar announcements by the central banks of the United States and the European Union. The US Federal Reserve and the EU said they intended to buy bonds to stimulate their respective economies.