Philippine peso could still remain under pressure within the P61-P63 range compared to a United States (US) dollar due to the lingering impact of the renewed tension between the US and Iran, a unit of Fitch Solutions said.
In its latest currency assessment, Business Monitor International (BMI) stated that peso could weaken due to a renewed rising tension in the Middle East, the strength of US dollar, and seasonal rise in import products.
Philippine peso is expected to trade between P61-P63 against dollar this year, remaining one of Asia’s weakest currencies due to persistently weak sentiment driven by rising oil prices and external risks.
BMI also noted that financial markets expect the United States Federal Reserve to raise key interest rates by 25 basis points (bps) by the end of the year.
However, the Fitch unit said the Philippine peso may strengthen slightly by the end of the year because of remittances from Filipinos abroad.
