Philippine Daily Inquirer
6:51 pm | Wednesday, May 22nd, 2013
AFP FILE PHOTO
MANILA, Philippines — The peso was almost unchanged on Wednesday as the market digested reports the Japanese central bank is poised to continue with its heavy bond buying to stimulate the world’s third-biggest economy out deflation.
The local currency closed at 41.175 against the US dollar, down by just half a centavo from the previous day’s finish of 41.17:$1.
Intraday high hit 41.165:$1, while intraday low settled at 41.22:$1.
Volume of trade amounted to $649.7 million from $717.1 million previously.
The behavior of the peso during the day came amid a consensus among portfolio fund owners that the Japanese central bank might continue with its bond buying program, which would affect global liquidity and values of currencies.
The Bank of Japan’s bond buying program, through which it injects liquidity to the Japanese economy, is believed to be causing the yen to weaken against the US dollar. The strengthening of the US dollar, in turn, is making other emerging market currencies like the peso to weaken.
Despite the dampening effects of a weakening yen on the peso and other Asian currencies, traders said efforts to boost the Japanese economy, if these succeeded, would help buoy the economies of countries that have been exporting goods to Japan.
The Philippines is one of the countries that rely on Japan for their export revenues.
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Tags: Bank of Japan , Bond Buying , Business , currencies , Deflation , economy , Finance , Foreign Exchange , Philippine peso , US dollar
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