Peso Stands Strong against Other Asian Currencies
The Philippine Peso continues to do well in terms of Peso-Dollar exchange despite the currency being widely reputed to be one of the weaker currencies in the region. In the first two months of 2013, the Peso is reported to be on one of the fastest appreciating currencies in Asia. During the latter half of the previous year, the exchange rate saw the Peso getting consistently stronger against the Dollar. The average exchange rate for the past four years has continuously declined, with the Peso getting stronger as each year passes.
Last January 18, the Peso saw its lowest point in the last twelve months with the Peso holding up at 40.55 PHP to 1 USD. In the last year, the Peso saw its weakest point during May 2013 when the currency peaked at 43.79 PHP to 1 USD. Since the year began, the Peso has seen very slight decreases in terms of strength but overall, will seem to follow the yearly trend of the past few years. In terms of a year-on-year comparison for the month of January, the monthly average exchange rate has significantly decreased to what it was the year before. January 2013 saw an average monthly exchange rate of 40.73 PHP to 1 USD. This is a significant improvement from the previous years’ rate of exchange which in January 2012 had a monthly average exchange rate of 43.62 PHP to 1 USD.
The exchange rate is forecasted to continue on its upward trend for the next two years according to ING, the Dutch financial product and service provider. Factors influencing this continued increase include the awarding of a BB+ debt rating to the Philippines from many rating agencies including Standard & Poor’s and Fitch Ratings, strong overseas remittances, as well as strong economic performance that has led to increases in foreign investment which has in turn positively affected many sectors including real estate, specifically commercial office space leasing.