Close  

Peso hardly moves due to global concerns

Traders also awaiting Asian central banks to boost liquidity
/ 07:18 PM October 09, 2012

AFP FILE PHOTO

MANILA, Philippines—The peso moved sideways on Tuesday as investors weighed concerns over a weak global economy and speculations that Asian central banks will inject more liquidity in their economies to boost growth.

The local currency closed at 41.46 against the US dollar, up by just one centavo from the previous day’s finish of 41.47:$1.

ADVERTISEMENT

Intraday high hit 41.36:$1, while intraday low settled at 41.49:$1.

Volume of trade amounted to $744.4 million from $786.1 million previously.

FEATURED STORIES

The minimal movement of the peso came following the release of a report by the International Monetary Fund that it has cut its global economic growth outlook for this year from 3.5 to 3.3 percent given the prolonged economic problems in the United States and the eurozone.

The IMF said in its latest “World Economic Outlook” that the anemic performance of the US economy and the crisis in the eurozone would pull down demand for goods from, and thus export earnings of, developing countries like the Philippines.

For the Philippines, the IMF is keeping its 4.8-percent growth projection for this year.

Traders said that besides concerns over a weak global economy, investors were likewise influenced by the belief that Asian central banks, including the Bangko Sentral ng Pilipinas, would keep interest rates low so that growth in credit, and thus consumption and investments, would be boosted.

BSP Governor Amando Tetangco Jr. was quoted as saying last week that the BSP would further cut rates if unfavorable developments in the global economy would pose more dampening effects on the Philippines’ own growth.

ADVERTISEMENT
Read Next
LATEST STORIES
MOST READ
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Asian economy, business and finance, currencies, economy, Foreign Exchange, global economy, liquidity, Philippine peso, US Dollars
For feedback, complaints, or inquiries, contact us.


© Copyright 1997-2019 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.