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Philippine peso bounces back


MANILA, Philippines - the peso on Wednesday recovered against the dollar following a bounce in US stocks. It gained 32 centavos from Tuesday to close at P49.18 per dollar. Traders traced the renewed strength to a rebound in Wall Street share prices, lifting stock exchanges in Asia. US share prices pulled back from record losses triggered early in the week by news the world’s largest economy had been in recession for nearly a year. "The peso recovered as US stocks went up on Tuesday," a trader said. "We could see it was externally driven. There was unloading of dollars from Monday." Another trader, however, believed that the peso’s recovery from its fall on Tuesday was short-lived despite remittances now coming in bulk as the Christmas holidays draw near. Investors are keeping an eye on how governments would respond to increasing threats of a recession in developed economies spilling over to Asia. "It was just a correction. We’re receiving remittances but they’re not enough for the peso to appreciate. There is no big news for recovery. We’re still waiting for that," a trader said. The peso opened at P49.35 and reached a low of P49.43 before settling near its intraday high of P49.13 per dollar. It averaged at P49.289 per dollar. — Maria Eloisa I. Calderon, BusinessWorld
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