MANILA, Philippines - The peso gained 28.5 centavos yesterday, breaching the 42 to $1 barrier after Asian currencies strengthened on moves by the Federal Reserve to boost the US economy by maintaining its benchmark interest rate until late 2014.
The peso closed at 42.845 to $1 yesterday from Wednesday’s 43.13 to $1.
The peso hit an intraday high of 42.81 to $1 and an intraday low of 43 to $1. Volume at the market reached $1.057 billion from $965.98 million the other day.
Traders said key Asian currencies including the Philippine peso strengthened against the greenback amid optimism fueled by moves of policymakers within and outside the country to stimulate economies through low interest rates.
They also cited the expectations that the US economy is starting to recover more significantly from its recession in 2009. The US is one of the biggest export markets for Philippine made products.
The US Fed announed that it will keep its interest rate at historic lows of between zero and 0.25 percent until late 2014.