Philippines Peso rallies against dollar: Remit now?

Philippines Peso rallies against dollar: Remit now?

Manila: The Philippine peso could spike further, after having already risen the most since January among Asian currencies. And is expected to continue to firm up on expectations of additional rate increases by the country's central bank. A higher peso would mean lower exchange rate for overseas Filipino workers (OFWs) who send money home in US dollars, or a currency pegged to the greenback. Now, the peso is widely expected to continue to be strong because the Bangko Sentral ng Pilipinas (BSP) is keen on maintaining a healthy interest-rate differential (IRD) with the US to stabilise the currency and inflation. The peso stood at 14.8423 against the UAE dirham as of 10.36 UTC on Monday. But the peso’s further rise could be hampered by a growing trade imbalance. Check the . The assumption that the BSP, one of the few Asian central banks to maintain a tightening stance, will announce another rate hike this week is helping boost the peso. However, the Philippine trade deficit has jumped to its widest in five months as a result of a drop in exports — thus potentially putting the peso under pressure from dollar outflows on higher import bills. The country registered a