go777 Peso may further depreciate to 60 vs $1 territory in 2025

The Philippine peso may hit the 60:$1 level next year as the king dollar’s supremacy would likely continue, although its pass-through effect would unlikely result in another breach of the Bangko Sentral ng Pilipinas’ (BSP) inflation target, Bank of America (BofA) said.

Vincent Valdepeñas, country manager for the Philippines at BofA, said the greenback was expected to continue its rampage across other currencies as it enjoys safe-haven demand following the second US election victory of Donald Trump, whose threat to start a global trade war has spooked investors around the world.

READ: Peso hits record-low 59 as Trump 2.0 boosts dollar

Article continues after this advertisement

But Valdepeñas said the projected weakness of the peso would not be “alarming,” adding that the pass-through effects on inflation would likely be offset by an expected decline in world oil prices.

FEATURED STORIES BUSINESS Chavit Singson launches own digital bank, eyes 20M users BUSINESS Peso may further depreciate to 60 vs $1 territory in 2025 BUSINESS BIZ BUZZ: Almendras hangs up Ayala hat Record low

As it is, BofA expects price growth to average 3 percent in 2025 which, if realized, would settle within the 2 to 4 percent inflation target of the BSP.

“What’s alarming is if it (peso) goes to like 65 to 70. But a peso within the 55-60 range is actually okay. The effects won’t be that high,” Valdepeñas told the Inquirer in an interview.

Article continues after this advertisement

The Philippine peso had revisited the record-low 59:$1 level thrice this year as Trump’s tariff threats could stoke inflation stateside, a development that can slow the ongoing easing cycle of the US Federal Reserve.

Article continues after this advertisement

The Fed last week delivered another quarter point cut, but signaled fewer reductions in 2025.

Article continues after this advertisement BSP unfazed

At home, the BSP capped 2024 with a third 25-basis point (bsp) cut, bringing the cumulative easing this year to 75 bps.

Governor Eli Remolona Jr. said the current weakness of the peso was not yet a cause for concern, adding that the central bank may open 2025 with another rate cut.

vegas77 slots Article continues after this advertisement

READ: BSP closes 2024 with third rate cut

Valdepeñas said BofA expects the BSP to deliver two more quarter-point cuts each at the March and June meetings of the Monetary Board in 2025.

That projected pace of additional easing is similar to BofA’s outlook on the Fed, which may grapple with tariff-induced inflation in the US next year.

Your subscription could not be saved. Please try again. Your subscription has been successful.

Subscribe to our daily newsletter

SIGN ME UP

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

ChocoVron Vice President Marissa Lourdes Yala told the Philippine News Agency on the sidelines of the US-PH 2024 Trade Mission Conference at The Manila Hotel on Friday, October 18, that the P500 million (US$8.75 million) expansion plan of the company will triple the capacity of its production facility in San Pedro, Laguna.

“There’s a lot of X factors. So they’re all guessing now. So we’re all guessing that it’s (Trump tariffs) going to be more inflationary. It won’t be as conducive to a lot of easinggo777,” he said.

READ NEXT Mixed day for global stocks as market hopes for ‘Santa C... Gov’t unveils P629-B domestic borrowing plan for Q1 2025 EDITORS' PICK SC final ruling: Baguio excluded from ancestral land titling DOH warns vs holiday heart syndrome From vanishing ‘belens’ to pop-ups of polar bears—the changing face of Christmas in the Philippines Fuel price hike up to P1.45/L greets motorists on Christmas week Christmas weather: Rain in parts of PH on Dec 24-25 due to 3 systems DOH: No need for booklets in seniors’ meds purchase MOST READ Comelec reports kinks in online voting system for 2025 polls Celebrities mourn death of makeup artist Marife Mordido Marcos to sign 2025 national budget bill on December 30 DOH: No need for booklets in seniors’ meds purchase Follow @FMangosingINQ on Twitter --> View comments