The peso is predicted to outperform other currencies in the region this year, but it is not expected to strengthen against the dollar due to delayed rate cuts and the Philippines' trade deficit, according to HSBC. The local currency is likely to outperform Asian peers such as the Indonesian rupiah, the Taiwanese dollar, and the Thai baht. This is attributed to the peso's high yield, the Bangko Sentral ng Pilipinas' ability to contain depreciation pressures, limited exposure to portfolio outflows, and the country's resilient economic growth.
Lenny Jin, global foreign exchange strategist at HSBC , said the local currency is likely to outperform some of its Asian peers such as the Indonesian rupiah, the Taiwanese dollar and the Thai baht amid a wave of hawkish repricing in the US.
This is due to the peso’s high yield in both nominal and real terms, the track record of the Bangko Sentral ng Pilipinas in containing large depreciation pressures, limited exposure to portfolio outflows and the economy’s resilient growth story. “With the balance of risk around domestic inflation still skewed toward the upside, we expect the authorities to remain attentive to foreign exchange weakness,” Jin said.According to Jin, dollar buying and selling interventions were observed in 2023, when the dollar-peso moved close to boundaries.
He said uncertainties regarding the interest rate environment of the US Federal Reserve may cause depreciation pressures for the peso.Get gorgeous hair for less: Enjoy up to 50% off + buy 1 get 1 free at Watsons hair saleGlobal Dominion spreads love, appreciation to its partner car dealersThe Asian Development Bank has trimmed its growth forecast for the Philippines for this year, citing risks posed by extreme...
Peso Currency Outperform Dollar Rate Cuts Trade Deficit HSBC Asian Peers High Yield Bangko Sentral Ng Pilipinas Depreciation Pressures Portfolio Outflows Economic Growth
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