The Chinese yuan (+.6%) and the Philippine peso (+.4%) were the two biggest Asian currency gainers for the week.
The interesting part has been the appearance of a tightening correlation between the two currencies since 2014. Although correlation may not be causation, perhaps there may be some developing linkages between the two for such correlation to have been reinforced.
That said, the yuan factor, or the reported change in the yuan’s fixing mechanism along with the PBOC’s massive intervention in the market that fell the USD yuan (blue), may have been driven the Philippine peso’s rally (USD php plunge in orange) more than the assumed link from domestic developments.
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