Philippines Peso Pain

It’s hard to make a concise case for why the peso is so forlorn, given the country’s growth trending above 6 percent the past half decade. Currency analysts list a series of reasons:

  • The current-account deficit is set to widen because of ambitious infrastructure plans.
  • Uncertainty over the passage of tax reforms that are winding their way through the legislature.
  • Political upheavals such as President Rodrigo Duterte’s war on drugs are harming sentiment.
  • Battles between government troops and Islamic State-linked militants in the southern city of Marawi have prompted additional caution among investors, and the cost of the military activity is putting pressure on the budget deficit.

“When you’re looking at other currencies in the region, it’s less appealing from that perspective,” said Stephen Innes, head of trading for Asia Pacific with Oanda, in an interview in Hong Kong on Aug. 17. “You have the current account increasing, the waves of instability in the political landscape, and it just becomes the local whipping boy.”


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes