Philippine Peso Heads for Quarterly Gain on Remittances Boost
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The Philippine peso is set to be the only Asian currency apart from the Hong Kong dollar to strengthen this quarter, supported by a seasonal increase in remittances.
Money sent home from abroad, which accounts for about 10 percent of the economy, usually peaks in the fourth quarter as some 10.5 million Filipinos living overseas send cash to their families before Christmas. The slump in global oil prices, a recent debt-rating upgrade from Moody’s Investors Service and stable inflation are also supporting the peso, said Alan Cayetano, head of foreign-exchange trading at Bank of the Philippine Islands in Manila.