FX Week

Politics drives Philippine peso

"Generally, politics is the main driver in the Philippines," said Claudio Piron, head of FX strategy at Standard Chartered in Singapore. "It’s the Achilles heel of the Philippine fiscal situation, as the politicians ultimately have the controls in terms of fiscal policy."

"The currency will continue to under perform in Asia," he said. "At the moment we are testing 56 [Philippine peso to the US dollar]. I think we’ll get a trend depreciation towards 57 next year."

A Singapore-based analyst at a