Peso poised for best quarterly gain in a decade

The Philippine peso is poised to achieve its best quarterly performance in ten years, with potential for further appreciation driven by positive fund flows.

The peso has strengthened by 4.6% this year, outperforming most emerging-market currencies due to a growing balance-of-payment surplus, increased foreign reserves, and a rebound in remittances.

This rally is part of a broader emerging-market currency upswing, supported by global central bank stimulus and a weaker US dollar, following the March coronavirus shock.

Recent economic data suggests that the pandemic's impact may be lessening, further bolstering the peso's performance.