Forex 'unlikely' to breach ₱60 vs USD

Private-sector economists said the Philippine peso is unlikely to fall to the ₱60 level against the United States (US) dollar, as the Bangko Sentral ng Pilipinas (BSP) closely monitors developments that could warrant intervention or an adjustment in its easing cycle to support the local currency.

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Oikonomia Advisory and Research Inc. economist Reinielle Matt Erece said the peso dropping to the ₱60:$1 level appears "unlikely, as we may see major interventions from the central bank to avoid further capital outflows."

"We may also see a readjustment in the monetary policy easing schedule to account for the continued depreciation of the peso," Erece added. It can be recalled that the BSP shifted to a more dovish tone recently, signaling further cuts after the fourth quarter-point cut in October to 4.75 percent.

Reyes Tacandong & Co. senior adviser Jonathan Ravelas said the market should expect the BSP to "act decisively if global shocks worsen or volatility spikes."

Ravelas noted that the peso hitting ₱60 is "probable, but not a done deal," given that the central bank "has the firepower to defend the peso, and our core fundamentals are still solid."