Philippine peso (PHP) Exchange Rates & Currency Deals

Bias USD-PHP remains range-bound near the upper end of a 3-month band. The rate gap narrows as US policy eases toward neutral and BSP eases gradually, backed by MUFG's view of easing inflation and more infrastructure investment. Recent USDPHP moves show the pair hovering near the upper band without a breakout. Key drivers - Rate gap: US policy is expected to ease toward neutral, while the BSP also plans to ease later, narrowing the gap. - One macro factor: MUFG sees the peso supported by easing inflation and more infrastructure investment, with the BSP likely to ease gradually. Range likely to drift within the recent band, with a tilt toward the upper end. What could change it - Upside risk: hawkish Fed signals or stronger US data that keep USD firm against PHP. - Downside risk: softer US data or dovish Fed commentary that reduces USD demand and allows PHP to strengthen