The Canadian Dollar is trading at 38.27 against the Philippine Peso this morning, down -0.51% with a YTD return of 1.60%. The pair’s open rate sat at 38.27, down from their previous close of 38.47. CAD/PHP is expected to have a daily range between 38.23 and 38.34, their 52-week range is forecasted to move between 34.89 and 38.93.
CAD/PHP has continued to grow as the market approaches the one-year mark of the pandemic. After falling from the 38.00 level to 35.00 last March, the currency pair’s exchange rate has recovered well, staying within the 38.00 range since mid-February.
With the continued success of crude oil barrel prices, CAD is expected to hold steady in the coming weeks. The loonie has been backed by rallying oil prices for weeks which has been beneficial for bulls. With the spread of COVID-19 vaccinations and eased lockdown restrictions, bears may also find CAD stabilizing itself compared to a broad basket of currencies.
Bloomberg reported that “the Philippine peso has been under siege from rising Treasury yields and buoyant crude prices.” Last week PHP fell to its lowest exchange rate seen in six months “following an extension of coronavirus-led curbs in the nation and delays in vaccine rollouts.”
The 10-year Treasury yield in the Philippines surged to 1.6% which further backed the bearish momentum on the currency. “The peso is among Southeast Asia’s worst-performing currencies this year. It’s declined 1.1% in February” as global funds sold $171 million of Philippine stocks during Q1 2021.
“Technical factors supporting the peso are likely to come into focus once again” after February’s inflation data in the Philippines is released. “If price pressures quickened, this could erode the nation’s real yields and weigh on the currency” in the coming weeks.
By Surina Nath