USD/PHP: Less support from remittances – ANZ

The peso has bucked the regional trend by rising 0.5% since 20 January. However, analysts at ANZ Bank do not expect this outperformance to continue for long. USD/PHP trades at 50.5155.

Key quotes

“The extension of the lockdown in Manila and other high-risk zones will drag growth further.”

“On top of anticipated fallouts for the trade and tourism industries, a possible contraction in overseas remittances this year, given the large job losses seen globally which will affect overseas.”

“Filipino workers will hurt domestic spending and reduce support for the PHP. We see USD/PHP at 53.0 by Q3.”