Peso inches up on reports of improved US home sales, efforts to end fiscal woes

AFP FILE PHOTO

MANILA, Philippines—The peso inched up slightly on the second trading day of the week as reports of an increase in US home sales and efforts toward addressing the fiscal woes of the world’s biggest economy lifted risk appetite of investors.

The local currency closed at 41.71 against the US dollar on Tuesday, up by 1.5 centavos from the previous day’s finish of 41.185:$1.

Intraday high hit 41.11:$1, while intraday low settled at 41.18:$1.

Volume of trade amounted to $664.6 million from $673.1 million previously.

The appreciation of the peso and other key emerging Asian currencies came following reports that the sale of previously owned houses in the United States grew by 2.1 percent year on year in October.

The rise of the peso likewise occurred amid reports that US officials have started official discussions on how to solve the fiscal problems of the US government.

Traders said favorable developments in the United States, a key export market for goods coming from the various countries like Philippines, helped improve sentiment over the global economy and outlook on the growth performance of emerging Asian markets.