By: David Finnerty, Bloomberg
Published: June 22, 2020, 7:41 AM GMT+8
Full Article: Every Southeast Asian Currency Gained in June — But They Can’t Catch Philippine Peso
Snippet: June is shaping up to be a good month for Southeast Asia’s currencies, with every one gaining.
The rebound is narrowing coronavirus-induced losses sustained by just about every foreign exchange in the region this year. While the Indonesian rupiah, Thai baht and Malaysian ringgit all showed improvement, the Philippine peso is by far the best-performing currency in 2020 with its 1% gain.
Philippine peso has outperformed peers so far this year.
The peso’s outperformance is partially due to an improving current account, with imports in April down by the most since 2009 as the nation was under lockdown.
However, it is facing growing headwinds from declining oversees remittances. Bangko Sentral ng Pilipinas has also signaled concern over the appreciation by intervening to stop further gains. Investors will be awaiting guidance on the currency from BSP’s policy meeting on Thursday. The central bank is expected to keep rates unchanged after slashing rates by 125 basis points this year.