MANILA, Philippines - The Philippine peso is expected to return to the 45-to-the-US dollar level next month, according to a report by First Metro Investment Corporation (FMIC) and University of Asia and the Pacific (UA&P) Capital Markets Research.
The report noted that the peso's depreciation bias has not been avoided in the first two months of 2014, even though the Bangko Sentral ng Pilipinas has intervened in the foreign exchange market.
"We do not believe that the depreciation bias has been avoided. Rather, it has been just postponed for a little later this year, when the US economy resumes its upswing after unusually snowy winter," it said.
FMIC and UA&P sees the Philippine peso averaging 44.398 against the US dollar this month, and may even hit 45.25 in April.
Since the start of the year, the peso has continued to weaken, averaging 44.93 in January.
"The Philippine peso performance will continue to track US recovery and the BSP's exchange rate reforms," the report stated.