DBS, MUFG see peso stabilizing

Singapore-based DBS Bank Ltd. projects a stronger outlook for the Philippine peso, expecting it to regain ground against the United States (US) dollar to the 54:81 level by the end of next year, despite the currency’s recent slide to fresh record lows.

- By DERCO ROSAL

Based on DBS’ forecast published last Friday, Nov. 14, the peso is expected to gain against the dollar over the near term. From the latest low, DBS forecasts the dollar-peso exchange rate to drop to P56.3:$1 by the end of December.

The peso hit a new all-time low last Wednesday, closing at 59.17 per dollar, surpassing the previous record of P59.13:$1 set on Oct. 28.

DBS expects the peso will strengthen further to P55.8:$1 in the first quarter of 2026 and 55.3:$1 in the second quarter. It is then expected to breach the 55 level in the third quarter of 2026 at P54.8:$1, and strengthen further to P54.4:$1 by the end of next year.