By Joann Santiago
MANILA, (PNA) – – Investors have taken on a more risk-on attitude Friday boosting the peso on news about the possibility that US President Barack Obama and the legislators can come out with a measure to avert a government default.
The local currency ended the week at 43.13, sideways improvement from Thursday’s 43.15 finish.
“People have taken on more risks on optimism that US lawmakers will vote on the increase of the debt ceiling,” a trader told PNA in an interview.
Reports said US lawmakers are eyeing to use the issue on the need to raise the government’s debt limit for the White House to give its thumbs up on a budget cut or revision of Obama’s proposed health care law.
The US government has until October 17, 2013 to hit its US$ 16.7trillion debt ceiling and failure of the government to put a stop-gap solution means negative repercussions not only to the world’s largest economy but the global economy as well.
The on-going partial shutdown of the US government and how it is being dealt with continues to weaken the dollar against its counterparts.
On Friday, the peso opened better against the greenback at 43.12 from day-ago’s 43.20.
It traded between 43.07 and 43.16 resulting to an average of 43.11.
Volume of trade reached US$ 818.3 million, lower than day-ago’s US$ 997.1 million.
The trader said there was some dollar demand coming from oil companies during the day, which made the dollar trade better.
Next week, the peso is projected to trade better and go up to the 42-level or between a range of 42.80 and 43.15 still due to developments of the talks on the US debt ceiling.