MANILA, Philippines — The peso is expected to remain one of the most stable currencies in the region as it emerged as the second best performing currency after the Thai baht, according to the Department of Finance (DOF).

Finance Undersecretary Gil Beltran said in his latest economic bulletin the peso appreciated by 2.82 percent to close at 51.07 to $1 on July 31 from 52.52 to $1 on Jan. 1.

Data showed the Thai baht gained 4.27 percent to 30.95 to $1 from 32.26 to $1, while the Indonesian rupiah was the third best performing, appreciating by 2.69 percent to 14,002.5 to $1 fro 14,458 to $1.

On the other hand, the South Korean won emerged as the worst performing currency, depreciating by 6.65 percent to 1,184.88 to $1 from 1,119.10 to $1 followed by the Taiwanese dong that shed 1.75 percent to 31.08 to $1 from 30.79 to $1.

In terms of volatility, Beltran said the Philippines stayed in the middle of the pack of 12 countries in the region with a coefficient variation of 0.82 percent, lower than the 0.93 percent average in the region.

“The peso-dollar exchange rate also remains stable throughout the period,” Beltran said.

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The South Korean won was the most volatile currency followed by the Japanese yen, Thai baht, Chinese yuan and Indian rupee with 1.06 percent.

The finance department’s chief economist said the main reasons for the peso’s growing strength and stability are the country’s strong balance of payments (BOP) position due to strong inflows of remittances, foreign direct and portfolio investment, recovering export earnings among others.

“Strong foreign exchange inflows from exports of services, remittances, income from investments abroad, direct foreign investments and foreign borrowing all contributed to the strong BOP position. These in turn boosted the confidence in the Philippine peso,” Beltran said.