Philippines peso rises to one-month high

MANILA, Philippines - The peso on Tuesday hit a fresh one-month peak against the dollar on the eve of a US Federal Reserve rate-setting meeting, where rates are expected to be slashed to an all-time low. The local currency gained twenty-two-and-a-half centavos to close at P47.40 per dollar, its highest finish since Oct. 14. It tracked Asian currencies that were stronger against the greenback, which weakened amid expectations of a hefty rate cut in US interest rates. The Fed was widely believed to lower its interest rates closer to zero in a bid to arrest an economy already in a year-long recession. "Equities were quite flat but Asian currencies continued to appreciate as a rate cut from the Fed is looming tonight," a trader said Tuesday. "Those who were fortunate to short their dollars Tuesday took profit today," another trader said, adding that remittances continue to give the peso additional push. The peso opened at P47.43 per dollar, reached a high of P47.31 and a low of P47.50 against the dollar before settling at P47.40. It averaged at P47.373, with $352 million worth of dollars exchanged. — M. E. I. Calderon, BusinessWorld