Philippine Peso Completes Best Performance in Asia This MonthBy
The Philippine peso posted the best performance among Asian currencies this month, supported by rising remittances and record-high foreign-exchange reserves.
The peso rose 1.1 percent in August to 46.58 per dollar at the close of trading in Manila, its biggest monthly gain since March, according to Bankers Association of the Philippines data compiled by Bloomberg. The currency fell 0.2 percent on Wednesday.
The reason for the peso’s outperformance “remains the same - strong economic fundamentals,” said Alan Cayetano, head of foreign-exchange trading at Bank of The Philippine Islands. He forecasts a trading range of 46 pesos to 47.50 over the near term, adding the peso is likely to seek its own level as central bank refrains from intervening.
The country’s foreign-exchange reserves climbed to an unprecedented $85.5 billion in July, and remittances in June were up 4.8 percent, the fastest growth since February, according to central bank data released this month. Remittances have fueled consumer spending, which underpins economic growth.
The Bangko Sentral ng Pilipinas sees the peso supported by a healthy combination of strong growth and slow inflation, as the authority sticks to a flexible foreign-exchange policy. “We allow supply and demand conditions to determine the exchange rate,” Governor Amando Tetangco said Tuesday. “What we don’t want to see is too much volatility and sharp fluctuations in the exchange rate.”
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.
- Avicii, DJ-Producer Who Performed Around the World, Dies
- Southwest Airlines Gives $5,000 to Passengers on Fatal Flight
- Deutsche Bank's Bad News Gets Worse With $35 Billion Flub
- Wells Fargo's $1 Billion Pact Gives U.S. Power to Fire Managers
- Oil Shrugs Off Trump Tweet to Rise for a Second Straight Week