DOF: Peso among weakest currencies in Asia

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Metro Manila (CNN Philippines, June 29) — The Philippine peso remains among the weakest currencies in Asia, the Department of Finance revealed on Friday.

The department's latest economic bulletin showed that the Philippines has been Asia's second worst-performing currency since January, depreciating by 7.42 percent.

Others on the list are the Indian rupee, which dropped by 7.46 percent; the Korean won, by 6.13 percent; and the Indonesian rupiah, by 4.97 percent.

The DOF noted that three of these countries posted the fastest economic growth in the first quarter of the year: India's gross domestic product (GDP) rose by 7.7 percent, the Philippines by 6.8 percent, and Indonesia by 5.1 percent.


The DOF attributed the weakness of the currencies to the ongoing turbulence in financial markets due to the trade war between the United States and China, rising interest rates in the U.S., and the European Central Bank's monetary stance as it is about to cap its quantitative easing.

"Exchange rate movements -- whether depreciation or appreciation -- should not be taken as a sign of structural weakness in the economy," the DOF said.  "The exchange rate should move flexibly so that economic players are able to adjust promptly to market dynamics, thus sustaining economic growth."

The peso closed the trading week at  P53.34 against the U.S. Dollar, slightly stronger from Thursday's P53.48.

Among the best performing Asian currencies, on the other hand,  were the Japanese yen, the Malaysian ringgit, and the Hong Kong dollar.