The peso could hit P68 to $1 in the near term on the back of an aggressive rate hike by the US Federal Reserve, a veteran market analyst said.
Long-time BDO strategist Jonathan Ravelas echoed the prediction of House Ways and Means Committee Chairman and Albay Rep. Joey Salceda that the peso would further weaken in the coming months.
“Yung sinasabi ni Rep. Salceda, most likely yang P65-68 could eventually materialize,” Ravelas told One News’ “The Chiefs” Thursday (September 29).
The peso has been flirting with the P59 level over the past week, already the weakest exchange rate in Philippine history. Ravelas expects the Philippine peso to trade at P61.80-61.90 for a dollar by the end of the year.
He said the Fed’s rate hikes will continue to make the greenback stronger against other currencies.
After a full percentage point rate hike this September, Ravelas said the US Federal Reserve still has a lot of catching up to do now that inflation there is at 8.4%, while the benchmark borrowing rate remains at 3.25%.