MANILA, Philippines -- The peso ended on Tuesday its appreciation the previous days as speculations arose that Asian central banks may intervene more in the foreign exchange markets to prevent sharp currency appreciation.

Dropping by 8.5 centavos, the peso closed at 44.44 against the US dollar on Tuesday from the previous day's finish of 44.355.

Intraday high stood at 44.32:$1, while intraday low settled at 44.51:$1. Volume of trade fell to $1.025 billion from $1.05 billion previously.

Asian currencies, including the peso, had been appreciating the past few days amid a bullish outlook of investors on Asian economies. Traders said the positive outlook has prompted investors to place more of their funds in portfolio investments, such as stocks, from the emerging markets in Asia, thereby resulting in appreciation of the regional currencies against the greenback.

The sharp rise of the currencies, however, is seen to hurt the export sectors of the region if such a movement is sustained.

Investors believe that central banks would not allow pushing the export sectors to a substantially disadvantageous position. As such, central banks, including the Bangko Sentral ng Pilipinas, are expected to implement some policies and measures that would temper the huge entry of dollar investments, which are causing local currencies to strongly appreciate, traders said.

Foreign currency-inflow controls somehow discourage actual entry of foreign portfolio investments, traders further said. The resulting depreciation of currencies, in turn, would make locally issued assets more expensive and, therefore, less attractive to foreign investors, traders added.

Less entry of foreign investments tempered the appreciation of some currencies, while causing the depreciation of others, they also said.