Peso rises on possible stimulus measures

AFP PHOTO/ROMEO GACAD

MANILA, Philippines—The peso inched up on Tuesday amid speculations central banks of major economies could soon implement measures to stimulate growth.

The local currency closed at 41.915 against the US dollar, up by 1.5 centavos from the previous day’s finish of 41.93:$1.

Intraday high hit 41.91:$1, while intraday low settled at 41.985:$1. Volume of trade amounted to $945.3 million from $854.66 million previously.

The rise of the peso came amid market speculations that central banks of Japan, the eurozone and the United States would be forced to implement stimulus measures given latest macroeconomic indicators showing growth of their economies might be faltering.

Japan, for instance, reported that its gross domestic product in the second quarter grew by a measly 1.4 percent compared with the 5.5 percent in the first quarter.

Traders said fund owners were looking at the likelihood that central banks of major economies would implement measures, such as bond purchases, to boost economic growth. The speculation has somewhat lifted investor sentiment, traders said.