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 rose as far as 44.90 per dollar, up a quarter of a percent from Thursday's close.
''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 and a basket of major currencies after U.S. data showed sales of new homes plunged in August, cementing expectations that the Fed would cut interest rates again next month.
The Indonesian rupiah , another high-yielder, moved in a tight range between 9,125 and 9,138 per dollar in early trade.
The Singapore dollar hit a fresh 10-year high at 1.4887 to the U.S. dollar, bringing its gains in the past week to 1 percent amid expectations that the central bank will stick to its modest tightening policy in a meeting early next month.
The Taiwan dollar , the second-worst performing currency behind the rupiah, rose to a two-month high of 32.725 per U.S.
The South Korean won also hit a two-month high of 916.4 to the dollar, but some analysts caution that its further upside may be capped by possible central bank intervention.
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