Stocks rally propels peso to two-week high
by BWorld/11.26.08
THE PESO yesterday soared to a two-week high against the dollar, tracking the rally in stock exchanges as plans bared by the US President-elect Barack Obama to stem the economic crisis and after the US government extended Citigroup Inc. a lifeline boosted investor confidence.
It closed at P49.455 per dollar, a steep thirty seven-and-a-half centavo climb from Monday’s finish. The local currency was last seen at this level on Nov. 13, when it settled at P49.49 per dollar.
Traders said financial markets cheered Mr. Obama’s plan of a two-year stimulus package to save a faltering US economy and his introduction of the team that will help him navigate the global financial crisis.
"That showed that he’s ready to tackle the crisis, by his forming a new economic team and creating new policies," a trader said."That was positive for the market. Asian currencies appreciated today."
The MSCI index of Asia-Pacific stocks excluding Japan rose 2.9%, heading towards a third consecutive daily gain.
The stock market rally came after the US government agreed to inject $20 billion of new capital into Citigroup and shoulder hundreds of billions of dollars of its risky assets to limit further damage to the global financial system.
The rally on Wall Street gave the peso a strong start, opening at P49.50 per dollar and climbing to an intraday peak of P49.44.
The central bank, however, was believed to have stepped in, buying dollars to provide the US currency some support. — MEIC with Reuters
1 comment:
There is more money to go around because the gov has dumped $$$--> Most people don't realize how much money there is out there. During economic times like this, there is more money to be had than ever. Because of the bailouts and economy, lenders are bending over backwards to bail you out too. Believe it or not, there is people getting tons of cheap money nowdays to start businesses, buy homes, pay off debt, and more. I'm using it for investment! Bailouts for Everyone
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