The PHP remains under significant pressure as widening trade deficits and unfavorable external conditions outweigh the supportive effects of remittances and BPO revenue. ANZ expects further downside for the currency amid a hawkish Fed environment.
Key Takeaways
- 1.The PHP remains under pressure, trading near all-time lows against the USD due to weak terms of trade, domestic growth concerns, and a widening trade deficit.
- 2.Structural external inflows from BPO revenue and remittances are being offset by the large goods deficit, with current account deficits expected to expand.
- 3.The Fed's hawkish shift continues to drive USD strength, contributing to capital outflows from emerging markets like the Philippines.
Table of Contents
- Contents
- Authors
- Deteriorating external balance weighs on PHP outlook
- Chart of the week
- Key view
- Upcoming events and data
- Data calendar
- Forecasts
- Recent insights
- Acronyms and abbreviations
- Contacts
- Important Notice
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Authors
Kausani BasakKhoon Goh
Securities
PHP/USD
Themes
External Balance DeteriorationHawkish Fed ImpactInflationary Pressures
Regions
Asia PacificPhilippinesChinaIndonesia