MANILA, Philippines -- The peso on Wednesday bounced back from the previous day's depreciation in what traders said was an indication of a generally positive outlook on the domestic economy.

The local currency ended the trading day at 44.25 against the US dollar, up from Tuesday's close of 44.44.

Intraday high stood at 44.245:$1, while intraday low settled at 44.58:$1. Volume of trade inched up to $1.36 billion from $1.025 previously.

After appreciating the previous days, the peso declined on Tuesday amid speculations of investors that central banks in Asia might already limit the entry of foreign capital into their countries to avoid hurting their export sectors too much.

But market analysts said the peso, like other major Asian currencies, appreciated again on Wednesday due to favorable sentiment on the Philippine economy and the Asian region in general. They said projections of robust economic growth have been attracting investments, largely in portfolio form, into the Philippines and its neighbors.

The Philippines grew by 7.9 percent in the first half, making it possible for the economy to surpass the official growth target for the full year set at only 5 to 6 percent.