The Philippine peso continues to move in tandem with 12 Asian currencies and is one of the least volatile currencies in the world’s fastest growing region.
The Philippine peso is one of the 7 Asian currencies that appreciated during the first month of 2019; it appreciated 0.73% from P52.56/US$ to P52.17/US$. On average, 12 Asian currencies appreciated by 0.79%.
In 2018, the Philippine peso depreciated by 5.4%, ranking 4th among 12 Asian currencies in a region where the average depreciation is 3.03%.
The Philippine peso is also among the least volatile with coefficient of variation at 0.32% YTD, tying with South Korean won as the 3rd least volatile currency. In 2018, the coefficient of variation of the peso was recorded at 1.91%, ranking 7th among 12 currencies.
The Philippine peso continues to be one of the more stable Asian currencies despite the uncertainties in the world market brought about by the normalization of Fed monetary policy, Brexit, volatile fuel prices and US-China trade war. The country also had to raise policy rates to counter inflationary pressures due to the drop in agricultural production and geopolitical issues that pushed petroleum price to its highest level in 4 years.