Peso strengthens on positive US outlook

The peso rose Wednesday, Nov. 21, 2012, to 41.145 against the US dollar, up by 2.5 centavos from the previous day’s finish of 41.17:$1.. AFP FILE PHOTO

MANILA, Philippines—The peso rose Wednesday as reports of rising number of new homes being constructed in the United States led to a better outlook on the global economy and boosted appetite for emerging-market assets.

The local currency closed at 41.145 against the US dollar, up by 2.5 centavos from the previous day’s finish of 41.17:$1.

Intraday high hit 41.135:$1, while intraday low settled at 41.21:$1.

Volume of trade amounted to $798.65 million from $663.6 million previously.

The rise of the peso and other key Asian currencies came following the release of a report that construction of new homes in the world’s biggest economy grew by 3.6 percent in October from a year ago.

Market players said the report substantiated hopes that the US economy is starting to more significantly recover from its recession in 2009.

They said an increase in economic activity in the United States, a key export market and which accommodates many migrant workers like Filipinos, is positive for the growth performance of emerging economies like the Philippines.