The peso yesterday rose to as high as 46.92 against the US dollar before profit-taking pulled it down to 47.13 at the close of trading.

The peso rose against the dollar for a second day on speculation global efforts to halt the economic slowdown will boost investor confidence in emerging-market assets.

The peso opened at 47 against the greenback, up from Friday?s close of 47.20, before edging at the day?s low of P47.13. Volume turnover stood at $664 million, up from Friday?s $584 million, with the peso averaging at 46.993.

Traders said the markets were generally up as investors found their risk appetite again.

?Overnight, the global markets were up. With the BA {Bank of America Corp.] support package, investors shook off some of their risk aversion. The optimistic view with the Obama inauguration also spilled into Asia and the appetite for emerging markets was back,? a trader from a foreign bank said.

Traders said local trading momentum took off mainly from the regional markets.

The peso advanced after the US government extended a $138-billion lifeline to Bank of America and President-elect Barack Obama pushed for an $850-billion stimulus package. The MSCI Asia-Pacific Index of regional shares climbed 0.4 percent, adding to the biggest gain in a month on Jan. 16.

?The market is looking at a positive carry in taking long positions in Asian currencies against the US dollar,? said Lito Biacora, vice president for treasury at Bank of the Philippine Islands. ?The bias is still for a peso appreciation.?

Long positions are bets that a currency will rise. A carry trade involves borrowing in a country with low interest rates to purchase assets that offer higher yields.

The huge $287-million deficit in the December balance of payments position that brought down the BoP to a surplus of only $88 million was overshadowed by the good news overseas.

A trader from a local bank said the December deficit was due in part to the delay in the release of the $300-million loan proceeds from the Asian Development Bank because of the long holiday.

?It?s a timing issue. The money is there now and you can add the proceeds of the $1.5-billion global bond issue and the $400-million proceeds from a power sector privatization. Those inflows are huge and they all help strengthen the peso,? the trader said. Eileen A. Mencias