SINGAPORE, Sep 28 (Reuters) The Philippine peso firmed past the 45-per-dollar level for the first time in two months on Friday as investors bought local stocks, while expectations of further US rate cuts continued to boost other Asian currencies.
The high-yielding peso
''We are seeing postive sentiment -- renewed interest in the equity market, but we are not seeing any possibility that remittance flows will discontinue,'' said a trader in Manila.
Asian currencies, led by high-yielders, have rallied alongside with rising regional stocks after the Federal Reserve cut its key interest rate by 50 basis points last Tuesday.
The dollar stuck near record lows against the euro
The Indonesian rupiah
The Singapore dollar
The Taiwan dollar
The South Korean won
Optimism about the near-term strength of Asian currencies is largely back after taking a blow from the credit market turmoil.
''In general, we expect the trend to continue, maybe not at the (current) pace,'' said Magnus Prim, SEB's chief Asia currency strategist.
''We are positive on the rupiah and peso -- these two probably have more to go. The Singapore dollar is also one,'' he said.
REUTERS SG PM0915