There’s a possibility that the Philippine Peso will weaken this month of September according to some analyst after the Indian rupee and Indonesian rupiah slides among emerging Asian currencies in August as capital flowed out of the region on expectations of the US Federal Reserve will soon begin to reduce monetary stimulus.
Although regional units scratched out gains on Friday, the damage for the month was extensive. The rupee has tumbled 10.4% against the dollar so far this month, according to Thomson Reuters data. The rupiah has lost 5.9% so far in August, its biggest monthly fall since November 2008.
The Philippine peso has slid 2.7 percent, which would be the largest monthly fall since May last year. On Friday, the peso gained as overall strength in regional units caused investors to cover short positions, however, the government gave up some initial gains on dollar demand from local companies.
According to some trader in the Philippines, the peso may weaken to mid-45 dollar in September, although the peso may find support around 45.50 given the increasing remittance inflows in the next coming months.
