Peso Seen Strengthening to 54.5:$1

The peso is projected to continue appreciating against the dollar driven by benign inflation, more policy easing by the Bangko Sentral ng Pilipinas (BSP) and improving investor sentiment, according to MUFG Bank.

- By KEISHA TA-ASAN

In its latest foreign exchange outlook, MUFG said the peso could reach 54.50 to $1 by the first quarter of 2026 reflecting expectations of further BSP rate cuts and steady macroeconomic fundamentals.

"We forecast the peso to strengthen to 54.50 against the dollar by the first quarter of 2026," MUFG said in its report, adding that the local currency could breach the 55 to a dollar level in the second half.