The USD/PHP is higher as the central bank was suspected of buying dollars to stem the local currency's strength; the pair slipped to a fresh four-and-a-half-year-low at 41.44 in early trade. The USD/PHP is last at 41.57 vs 41.56 late Tuesday in Manila. Volume is heavy, with many banks covering their short USD positions. A local bank trader says the USD/PHP may be undermined by expectations that U.S. Federal Reserve will announce another round of quantitative easing. Traders expect the USD/PHP to find support at 41.30 and resistance at 41.60 in the near term; they say the central bank could step in again if the USD/PHP slips below 41.50. Traders are also watching the central bank's policy meeting on Thursday for a possible surprise rate cut given the stronger peso.
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