'Peso may breach 60:$1 threshold"

If Trump policies surprise markets

- By KEISHA TA-ASAN

The peso may breach the critical 60 to $1 threshold if the policies of Donald Trump when he assumes the US presidency surprise global markets, according to BMI Country Risk & Industry Research.

In a report, BMI said the peso is expected to trade within the 55.20 to 59.20 range against the dollar this year. But the think tank said the local currency is facing heightened volatility as Trump's aggressive protectionist stance could exacerbate further depreciation.

"Breaching the 60 to $1 level remains a very real possibility," BMI said. "If the newly elected president opts for very aggressive protectionism policies that take markets by surprise, the dollar could reach another all-time high," it said.

The Bangko Sentral ng Pilipinas (BSP) has actively intervened to stabilize the peso against the dollar, but BMI warned that such efforts may prove insufficient if external pressures mount.