With its own analysis of varied economic factors, Metrobank stated that the Philippine Peso could end up at a rate of P59.70 to the US Dollar by the end of this year, according to a BusinessWorld news report.
To put things in perspective, posted below is an excerpt from the business news article of BusinessWorld. Some parts in boldface…
THE PESO may settle at P59.70 against the dollar by end-2026 on expectations of an economic rebound driven by improved investor confidence, Metropolitan Bank & Trust Co. (Metrobank) said.
In a commentary dated Feb. 10, Metrobank trimmed its peso forecast for end-2026 to P59.70 a dollar from P60.80 previously. It likewise projects the peso to end 2027 at P58.50 versus the greenback, from its earlier estimate of P58.90.
“(A)n anticipated economic growth rebound and improved investor confidence, thanks to better government spending, could support the peso,” it said.
If the bank’s 2026 forecast holds true, the local unit would end the year weaker than its P58.79 finish against the dollar on the last trading day of 2025.
The lingering effects of the flood control corruption scandal and uncertainties in the global market pushed the peso to test new lows at the start of the year.
On Jan. 15, it closed at P59.46 per dollar, breaking the previous all-time low of P59.44 recorded just the day prior.
However, it has recently strengthened amid a weak dollar. On Wednesday, the local unit hit a near four-month high after closing at P58.29 versus the greenback, up 24 centavos from its P58.53 finish on Tuesday, data from the Bankers Association of the Philippines showed.
Meanwhile, Metrobank noted that the peso could struggle to regain further strength as the country’s current account is projected to remain at a shortfall this year.
“Still, the projected current account deficit this year — although narrower than last year’s — would cap the peso’s strength,” it said.
Based on the latest central bank data, the current account balance stood at a $12.5-billion deficit by the end of the third quarter. This was equivalent to -3.6% of gross domestic product (GDP).
Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the Peso could perform better against the US Dollar and end up better than what Metrobank estimated? Do you think a weaker Peso would be very helpful to the exporters?
You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.
+++++
Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram athttps://www.instagram.com/authorcarlocarrasco
Author Carlo Carrasco 