The Philippine peso is this week’s sole gainer among Asian currencies on optimism the nation’s economy will benefit from the slide in oil prices and a recovery in the US, its second-biggest export market
Gross domestic product (GDP) rose 6.9 percent last quarter from a year earlier, official data showed on Thursday. That beat the 6-percent median estimate in a Bloomberg survey. The Philippines, which imports almost all of its oil, may not need additional support, as the slump in prices cuts costs and boosts incomes, Bangko Sentral ng Pilipinas Governor Amando M. Tetangco Jr. said on January 20. Brent crude has plunged 56 percent since the end of June. The Federal Reserve (the Fed) this week boosted its assessment of the US economy.
“The Philippines is one of the better growth stories in the emerging-market space,” said Saktiandi Supaat, head of foreign-exchange research at Malayan Banking Bhd. in Singapore.
“The US growth recovery makes it more enticing. It’s also not pulled as much by the drop in
commodity prices.”
The peso appreciated 0.2 percent on
January 23 and 0.1 percent on Friday to 44.075 a dollar as of 10:43 a.m. in Manila, prices from Tullett Prebon Plc. show. The currency has climbed 1.5 percent this month, the most since May, making it the second-best performer in Asia after India’s rupee. The Fed described the expansion in the world’s largest economy as “solid” after a meeting on Wednesday in Washington, an improvement over the “moderate” performance it saw in December.
Ten-year Philippine government bonds headed for their biggest monthly gain since July 2013. The yield on the 13.75 percent benchmark notes due 2024 fell 30 basis points, or 0.30 percentage point, this month through Thursday to 4.08 percent, according to fixing prices from the Philippine Dealing & Exchange Corp. The rate dropped 11 basis points on January 23.