BENGALURU: The Philippine peso slipped to its lowest in a week on Friday and most other regional currencies traded in tight ranges, while South Korean and Singapore stocks surged to record highs.
The peso depreciated 0.3 percent, dropping to its lowest since February 12, after the Philippine central bank made a 25-basis-point cut on Thursday, a largely priced-in move that did not immediately stir the market. However, investors heeded caution from the central bank governor’s tone after he said policy outlook would depend on how quickly confidence returned in the economy.
“The BSP’s cut came with cautious guidance, reflecting a weaker-than-expected recovery, softer confidence indicators and delays in government spending,” said Radhika Rao, senior economist at DBS Bank.
For the week, peso has risen 0.4 percent so far, set to snap a four-week streak of losses. Analysts also pointed out that the rise in oil prices could impact Asian currencies, especially the peso.
“Brent prices have climbed by around USD10 a barrel since the start of the year and this makes the outlook for Asia FX less bullish on the margins,” said Abbas Keshvani, Asia Macro Strategist at RBC Capital Markets.
“Most major economies in the region are net oil importers, especially Thailand, India, Korea, and the Philippines…PHP will come under greater depreciation pressure if energy prices remain elevated.”
Elsewhere in the region, the Indonesian rupiah was down 0.2 percent in early trade but soon pared losses to trade flat.
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