DOF Economic Bulletin on Exchange Rate Volatility

The Philippine peso has been moving in tandem with Asian currencies amid severe exchange rate volatility spawned by the global trade war, the Turkey-Argentina crisis and the Fed monetary normalization.

Year-to-date, the Philippine peso depreciated by 7.39%, ranking 3rd among 12 currencies of the fastest growing Asian countries. The most depreciated currencies were Indian rupee depreciating by 11.7% and Indonesia, by 9.0%. Following the Philippine peso are the Chinese yuan (down 4.97%) Korean won (down 4.46%), and Taiwan dollar (3.46%). The countries experiencing the highest depreciations were among the fastest growing countries---India at 8.2%, China at 6.8%, the Philippines at 6.3% and Indonesia at 5.1%. (Table 1) These are also the countries with the highest GDP growth rates---India at 8.2%, Philippines at 6.3% and Indonesia at 5.2%.