The exchange rate forecast for CAD to PHP indicates a delicate balance influenced by multiple economic factors. Currently, the exchange rate stands at approximately 41.76 PHP per CAD, which is marginally above its three-month average, reflecting a stable trading range between 40.97 and 42.38 PHP.
Analysts have noted that the Canadian dollar (CAD), or “loonie,” is resilient, largely buoyed by rising oil prices. As Canada is a leading oil exporter, fluctuations in commodity prices directly impact the CAD's strength. Recent data shows oil trading at 63.33 USD, approximately 2.4% below its three-month average, yet still within a volatile range that may cause further uncertainty for the CAD as it depends on future oil price movements.
Conversely, the Philippine peso (PHP) has faced challenges, including depreciation driven by concerns over economic performance amidst looming infrastructure spending issues. The peso recently hit a record low of 59.262 per USD, and subdued inflation in the Philippines coupled with expectations of rate cuts by the Bangko Sentral ng Pilipinas (BSP) may further weigh on its value. Analysts predict that if inflation remains low, the BSP may ease rates, which could weaken the peso against stronger currencies like the CAD.
Furthermore, the peso’s overvaluation since 2019 has diminished its competitiveness in exports, compounding the currency's struggles against a backdrop of significant trade deficits. As noted by economic forecasters, trade relations and remittances, which are vital for the Philippine economy, also play an essential role in the peso’s valuation.
Overall, future movements in the CAD to PHP exchange rate will greatly depend on the trajectory of oil prices, the Canadian economic outlook, and the monetary policy decisions from both the Bank of Canada and the BSP. Keeping abreast of these developments will be key for individuals and businesses involved in international transactions.
