The peso climbed to a four-month high against the US dollar Thursday, after the Federal Reserve kept interest rates steady that weakened the greenback against other currencies.
The local currency gained P0.40 to close at 46.38 against the dollar Thursday, up from 46.785 a dollar Wednesday. It was the peso’s strongest level since settling at 46.21 per greenback on Oct. 20, 2015. Total volume turnover stood at $986.5 million, higher than $669.65 million Wednesday.
Nicholas Antonio Mapa, research officer at the Bank of the Philippine Islands, said with the Fed keeping rates steady and flagging a slower pace of hike, “all risk currencies are appreciating.”
“This can be expected to continue in the coming days as risk-on sentiment dominates,” Mapa said in an e-mailed message.
Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. said the Fed’s decision was broadly expected. He said a stronger currency and possible implications for growth plus accommodative policies abroad further lowered the urgency of an “upmove” in the US interest rates.