The favorable economic growth performance in the country has attracted foreign “hot money” making the Philippine peso as of the fastest appreciating Asian currencies in the first two months of 2013.
Data from the Bangko Sentral ng Pilipinas (BSP) showed that the peso rose by 0.96 percent during the period, which is considered the second-fastest rate of appreciation among selected actively traded Asian currencies. The Thai baht appreciated the most at 2.96 percent.
The peso had strengthened by nearly 1 percent since the start of the year closing at 40.66 against the US dollar on Feb. 28.
Foreign portfolio investments also continue to the surge with gross inflow hitting $2.8 billion in January, which BSP data showed is more than double the $1.2 billion registered in the same month last year.
In comparison, other Asian currencies depreciated against the US dollar. The Indonesian rupiah weakened by 0.23 percent, the Malaysian ringgit fell by 0.91 percent, the Singaporean dollar dropped 1.08 percent, and the Japanese yen dropped 6.52 percent.