Deutsche Bank sees peso hitting P60 low

Deutsche Bank AG forecast the Philippine peso could weaken to P60 against the United States (US) dollar, its weakest-ever level, citing flagging business sentiment rooted in public spending concerns.

- By DERCO ROSAL

The Germany-based bank, in its 2026 Asia Strategy Outlook, projected the local currency will eventually rebound to stronger levels of P57 to P58 per US dollar.

“Poor corporate sentiment is showing through; not just in potential capital expenditures (capex) decisions, but also in views on the currency, as per our recent conversations with onshore clients,” Deutsche Bank analysts wrote.

The peso slipped to an intraday low of P59.17 per US dollar on Thursday afternoon, matching the all-time low posted in November.

“We suspect this will play out in phases over the course of 2026 - possible peso weakness first, followed by some recovery as the current account deficit shrinks due to the infrastructure and capex factors,” the bank said.