The Philippine Peso reached a 7 1/2 year high against the U.S. Dollar whie the South Korea's Won incurred a sharp decline after US. job data increased the appetite for higher risk investments amidst the Federal Reserve decision to cut interest rates. In the Asian region, every currency appreciated against the US Dollar apart from the Taiwan Dollar and the Korean Won. The US Federal Reserve on Tuesday cut its interest rate by a quarter of a percentage point to 4.25 percent, its third rate cut in an expansionary stance. Investors and traders believe that a cut in interest rates by the Central Bank of the Philippines on December 20 is the only way to curb the rising Peso. Despite the ongoing subprime crisis in the US, the Filipino Peso is said to remain strong due to the strong foreign exchange inflows from Overseas Filipino Workers (OFWs) to their families amidst the approaching Christmas season.
In forex trading, the Philippine Peso strengthened 0.4 percent against the US Dollar today. It hit 41.58 per US Dollar. The Philippine Peso has risen close to a total of 19 percent against the US Dollar this year and is at a high level since hitting 41.28 Pesos on May 10 of 2000.
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