Peso seen as more resilient amid uncertainty

The peso is expected to outperform its regional peers despite a stronger dollar, as the country benefits from high interest rates, steady foreign bond inflows and relative insulation from global trade tensions, according to Standard Chartered Bank.

- KEISHA TA-ASAN

While a strong dollar driven by a potential return of Trump-era trade policies could pressure global currencies, Standard Chartered economist for Asia Jonathan Koh said the peso is likely to depreciate less compared to other Asian currencies.

"By outperformance, it doesn't mean that the peso will appreciate against the dollar, but it depreciates less than other regional currencies," Koh said.

"Peso remains a high yielder versus the rest of the region. Interest rates are higher in the Philippines, which has driven a lot of foreign bond inflows into the country," he said.

Koh also said that foreign portfolio investments have helped cover the Philippines' current account deficit, which stood at 3.9 percent of gross domestic product in the first nine months of 2024.