“The Philippines doesn’t get a lot of investor inflow, and this is one of the biggest problems and why it tends to weaken off more aggressively than its regional peers when sentiment dies,” said Stephen Innes, head of trading for Asia Pacific at Oanda Corp. in Singapore. “It is still going to be the local whipping boy in the region.”
A forecast of 51 per dollar for year-end 2018 may be a bit optimistic if anything, he said.
Philippine policy makers have been in no rush to raise rates even after the Federal Reserve increased its benchmark this month for the third time this year. Central bank officials have defended their position by saying annual economic growth in excess of 6 percent is unlikely to cause overheating.
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.