Economists expect the peso to weaken anew against the dollar with the pickup in domestic demand and increase in imports as the Philippines recovers from the recession.
Dhiraj Nim, foreign exchange strategist and economist at ANZ Research, said the peso may weaken to 48.50 to the dollar by the end of the year and further to 49.30 by next year.
Nim said, “We expect the Philippine peso to depreciate gradually, reaching 48.50 by end of the year. However, the peso is expected to see sharper depreciation next year when we expect domestic demand and imports to rise more strongly.”
Nim said Philippine imports have been recovering and catching up with the recovery in exports, but the recovery in imports was likely affected by hurting domestic demand after the National Capital Region and nearby provinces were placed under strict lockdown and quarantine measures amid the resurgence of coronavirus disease infections.