The Philippine peso may depreciate further for the rest of the year, according to First Metro Investment Corp. on Thursday.
In a press briefing, FMIC announced that the local currency is projected to range from P41 to a dollar to P43 to a dollar.
“The Philippine peso is seen to remain in a depreciation trend at P41 to P43 to a dollar,” FMIC President Roberto Juanchito Dispo said.
He added that the appreciating peso is actually positive for the Philippines.
Dispo said that weak peso boosts the competitiveness of local producers and the business process outsourcing sector in the country.
It also adds to the purchasing power of the households that receive remittances from overseas Filipino workers.
Similarly, a recent report from the Standard Chartered Bank said that the peso may appreciate over the next few years.
“The Philippine peso benefits from solid economic fundamentals,” the report said.
The bank expects the peso to appreciate to P37 to a dollar on average in 2015 from a current daily average of P41.04 in 2013.
“We think that strong GDP [gross domestic product]growth, the solid current account balance and sustained accumulation of foreign exchange reserves will support the Philippine peso appreciation in the medium term,” it added.
However, considering Indonesia’s experience following its upgrade to investment grade, the bank believes that the speed of the peso appreciation is likely to slow.
On June 11, the peso entered the P43 to a dollar territory, the weakest level of the local currency since June 2012.
Mayvelin U. Caraballlo