Il Philippine peso continues his race against the US dollar. After hitting 56-month highs on the greenback on Tuesday, the Philippine currency continued its offensive into 40-to-dollar territory today, thanks to increased orders from expatriates and robust investor appetite for peso-linked bonds .
The local currency closed at a fresh high of 40.87 against the dollar, gaining another 13 centavos from Tuesday's close (41). Early week moves take the peso to 7% appreciation against the greenback year-to-date, making it one of the strongest currencies in the region.
Despite the gains, the Bangkok Sentral ng Pilipinas continues to argue that the peso remains competitive, as intraday fluctuations would remain lower than the region average despite the appreciation. The volatility rate would be 1,79% for the peso, versus 2,14% for the yen, 2,29% for the Australian dollar, 2,33% for the Indonesian rupiah and 4,38% for the Indian rupee .
