OCBC strategists Christopher Wong and Sim Moh Siong note Philippine Peso (PHP) remains under pressure even after a larger-than-expected 50bp Bangko Sentral ng Pilipinas (BSP) hike to 5.50%, reflecting persistent inflation concerns. Higher rates may temper depreciation but are unlikely to fully offset elevated Oil prices, external imbalances and domestic growth worries. OCBC keeps a cautious stance, saying a sustained PHP recovery needs lower Oil and a better external backdrop
Chris Turner at ING highlights that the Mexican Peso has been the weakest emerging market currency since early September, hurt by dovish Banxico rhetoric and narrowing policy spreads versus the Federal Reserve. Without a hawkish surprise at the 5 November meeting, he expects MXN to remain vulnerable, with IMF-flagged US tech exposure adding pressure and USD/MXN seen heading toward the 19.00–19.10 area in coming weeks.
Here is what you need to know on Friday, October 23: