Peso recovers 18 centavos on renewed risk appetite

The peso on Wednesday regained strength after hitting a more than five-year low against the US dollar.

"PHP also gained against the USD on the back of renewed risk appetite," said Josef Reyes, currency trader at Development Bank of the Philippines.

"Overnight, the Dow Jones gained and oil rebounded," Reyes noted.

The Philippine currency strengthened by 18 centavos at 47.815:$1 from 47.995.

It also appreciated ahead of tonight's Federal Open Market Committee statement after a two-day policy meeting, according to MetisEtrade.

"The market expects the statement of US policymakers to focus on the negative impact of low oil prices to US economic growth. This expectation influenced the US dollar to retreat and the local peso to recover," said Cherica Vicente, currency analyst at MetisEtrade.

"The Federal Reserve will most likely keep interest rates unchanged at 0.50 percent, following last month’s rate hike," Vicente added. – VS, GMA News