Strong peso until 2026 seen

Japanese financial giant MUFG Bank Ltd. sees the peso's appreciation streak against the United States (US) dollar being sustained until early 2026.

- BY BEN ARNOLD DE VERA

"We continue to forecast the Philippine peso to strengthen against the US dollar, reflecting low inflation, continued space for rate cuts, FDI [foreign direct investment] improvement, a likely trade deal with the US, coupled with strong infrastructure spending," MUFG Global Markets Research said in its latest foreign exchange outlook report for June 2025, published on Monday, June 2.

MUFG noted that the peso's end-May spot close of P55.73:$1 was stronger than the prior month's P55.841.

As Manila Bulletin reported earlier, MUFG still expects the peso to settle at P55.6 versus the greenback by the end of the second quarter, before appreciating further to P55 in the third quarter, and to P54.5 in the fourth quarter until the first quarter of next year.