Peso up over reports of Italy PM’s offer to quit, Asian good news

MANILA, Philippines—The peso climbed on Wednesday amid favorable economic indicators for some Asian countries and following the Italian Prime Minister’s offer to quit from his post after proposed austerity measures for Italy were passed.

The local currency closed at 43.05 against the US dollar, up by 9.5 centavos from the previous day’s finish of 43.145:$1.

Intraday high hit 42.95:$1, while intraday low settled at 43.06:$1. Volume of trade amounted to $1.06 billion from $800.08 million previously.

The appreciation of the peso on Wednesday, which was consistent with the strengthening of other currencies in the region, came amid reports of improved employment numbers in Korea, expectations of implementation of growth policies in China, and benign inflation in the region that would aid growth.

The rise of key Asian currencies also came after the announcement by Italian Prime Minister Silvio Berlusconi to resign if the austerity measures for debt-ridden Italy were passed. Policies implemented in the past under the Italian prime minister’s watch are blamed for the country’s debt woes.

For this reason, market players said financial markets responded positively on the news about the prime minister’s plan to quit and the push for the passage of the austerity measures.

Austerity measures proposed for Italy are some of the items included in the overall plan to resolve the debt problem of the eurozone, the anemic economic performance of which is affecting performance and growth outlook for the global economy.

Philippine Peso Exchange Rate