Peso faces potential slide to P60:$1

Should ongoing governance concerns and investors' flocking to safe-haven United States (US) dollars continue, the Philippine peso could come crashing down to the P60:$1 level.

- BY DERCO ROSAL

This comes on the heels of the peso hitting a fresh record low, closing at P59.17 against the US dollar on Wednesday, Nov. 12. Wednesday’s close surpassed the previous all-time low of P59.13:$1 on Oct. 28.

Reyes Tacandong & Co. senior adviser Jonathan Ravelas said the peso’s recent losing streak means global investors are flocking to safe havens, and market confidence is being dampened by dragging issues on public spending.

Ravelas said in a Nov. 13 LinkedIn post that the local currency breaching the P60:$1 level is “probable if these trends persist.”

While the Bangko Sentral ng Pilipinas (BSP) has tools to cushion the peso from further drops, Ravelas said the market—more than intervention—needs “credibility and clear policy signals” to regain trust.