Philippine peso at 2-week high past 44/dlr on oil

The Philippine peso rallied to the stronger side of the 44-per-dollar level on Wednesday, hitting a two-week high in reaction to a sharp drop in oil prices.

The peso <PHP=> rose to 43.85 against the dollar, its strongest since July 24, after a fall of more than $2 in one of its biggest import items, crude oil CLc1. Crude hit a low of $118 per barrel on Tuesday, its lowest since May 5.

"Lower oil prices is the main factor pushing the peso at the moment," a trader in Manila said.

He said the first resistance level for the peso would be at 43.83 per dollar, and although there was strong dollar selling pressure, he expected the central bank to intervene by buying dollars to cap the currency to prevent excessive peso movement.

The peso has lost 6 percent this year, a big turnaround from its pole position in Asia in 2007 when it gained 19 percent.