SINGAPORE, Dec. 8 (Reuters) — The Indonesian rupiah rose sharply and the Philippine peso hit a 2-/2-year high on Thursday as local sentiment stayed bullish, while other Asian currencies drew some support from a recovery in Japan’s battered yen.
The Malaysian ringgit edged up to its strongest level in about 1-1/2 months of 3.7720 on expectations of further interest rate rises.
The peso added more than half a percent from Wednesday’s close to peak at
P53.67 per dollar, its highest since July 2003, driven by remittances, which are expected to hit a record of about $10.3 billion this year.
Remittances from foreign workers are traditionally strong in the run up to Christmas.
Dealers said the peso’s rise gathered momentum after it broke through a key resistance level in the 53.80 area.
The rupiah gained as much as 0.9 percent from late Asian trade on Wednesday to hit a four-month high at about 9,770 per dollar.
The ringgit has been kept on a tight leash by the central bank since its peg against the dollar was abandoned on July 21.
Bank Negara lifted its overnight policy rate to 3.0 percent from 2.7 percent last week, the first increase in seven years, and dealers said the central bank was now letting the currency respond to market expectations rates would rise again.
