THE peso closed at its five-month high against the US dollar Wednesday in line with market’s sentiment on the resolution of the Greek debt issue and in anticipation that the low interest rate regime in the US will continue.

The peso gained P0.19 against the dollar Wednesday after closing at P42.21 from the previous day’s P42.41 finish. It last touched this closing level in Sept 2011.

It started Wednesday’s trading higher at P42.33 from day-ago’s P42.50.

Strongest trade for the day reached P42.21 while weakest stood at P42.38 resulting to an average of P42.284, better than day-ago’s P42.54.

Volume of trade reached $1.33 billion, lower than the $1.35 billion on Tuesday.

A trader said the local unit’s improvement is in line with those of currencies in the region on account of weaker dollar.

“The market is hopeful for the resolution of the talks on Greece’s liabilities, which is almost a done deal,” the trader said.

US Federal Reserve Chairman Ben Bernanke’s statement that risks to the recovery of the world’s biggest economy remain also sided with the peso against the dollar.

The trader expects the peso to further strengthen to P41.90 for the rest of the week while weakest level was eyed at P42.50.