ShareThisMANILA –- Decision of the US Federal Reserve to maintain to near-zero level its rates boosted the Philippine peso after it closed Wednesday to its more than two-year high of 43.88 to a dollar.
Wednesday’s closing is near the 43.75 to a dollar level it registered in June 2008.
It is better than the 44 level it registered in the previous day and ended to this level after a high of 43.95 and low of 43.88.
However, average for the day stood at 43.89, lower than the 44.02 day-ago.
Total volume reached US$ 1.266.69 billion, a tad higher than the US$ 987.93 million.
Analysts traced the improvement of the peso against the US currency to improvement in risk appetite due to prolonged low interest in the US.
The Fed this week decided to maintain to 0.25 percent its interest rate and indicated its readiness to provide “additional accommodation” to support recovery of the world’s largest economy.
Analysts see the peso closing at 43 level this year and Wednesday’s closing is the second time this year that it reached this level and even closed at more than two-year high.
The first time it touched the 43 to a dollar level this year happened on September 13, 2010 but closed to 44 level after the trading.