Peso hits near 4-year high as Fed allows higher inflation

The Philippine peso strengthened against the US dollar on Friday, closing at P48.485:$1, a near four-year high.

This appreciation was driven by the US Federal Reserve's decision to allow inflation to rise above its 2% target and focus on boosting employment in low and moderate income communities.

The local currency gained due to expectations that the Fed will keep interest rates low, pushing up inflation.