MANILA – Expectations on the approval of Greece’s bail-out plan along with Chinese monetary officials’ decision to cut reserve requirement ratio lifted investors’ sentiment and buoyed the peso against the dollar yesterday.
The local unit gained P0.04 to a dollar after finishing at P42.575 from last Friday’s P42.615 close.
It opened stronger at P42.49 today from the previous trading day’s P42.66 level.
It surged to P42.43 but lowest level stood at P42.60 resulting to an average of P42.498, better than the previous trading’s P42.655.
Also, volume of trade rose to $993 million from last Friday’s $935.56 million.
Dealers said investors are anticipating the approval of the terms of Greece’s 130 billion euro bail-out plan, which when approved would enable the economy to pay liabilities by March 20.
Also, the People’s Bank of China cut by 50 basis points effective February 24, 2012 lenders’ reserve requirement ratio, the second time in three months, to boost growth of China’s economy.*PNA