Tuesday saw Goldman Sachs note that......>

DOLLAR-PHP: Tuesday saw Goldman Sachs note that they "think PHP should

outperform other NJA high-yield currencies, and we change our short-term FX

outlook from bearish to bullish. Coming into the year, we were bearish the PHP

on exp. that robust growth & ambitious infrastructure spending plans would lead

to more capital imports, thereby widening the current a/c deficit. However, with

consumption & investment likely to fall significantly given the impact of the

domestic lockdown, we are now forecasting the current a/c to turn into a surplus

this year. Meanwhile, the Philippines' debt/GDP is still relatively low, which

means they have fiscal space, although new fiscal stimulus is more likely to be

channeled more towards helping households & SMEs rather than infrastructure, in

our view. Lastly, foreign holdings in Philippines local debt & equity markets

are relatively low, and thus the key driver of the PHP is likely to be the

current a/c."