Peso approaches P51 vs $1, analysts not worried

ABS-CBN News

Posted at Jul 20 2017 10:43 AM

A peso note is seen in this picture illustration June 2, 2017. Thomas White, Reuters/Illustration

MANILA - The peso hovered near the P51 to the dollar level on Thursday, reflecting strong imports due to the government's infrastructure program.

The local currency's steady decline should not be a cause for worry, analysts said, as new roads, bridges and airports would spur economic growth in the long term.

A weak peso will also boost export earnings and the purchasing power of those relying on dollar remittances, analysts said.

The peso's recent fall has not diminished investor confidence in the Philippines, said Kim Eng Tan, senior director for sovereign ratings at debt-watcher S&P.

"A modest weakening, as we are seeing right now, might boost exports. I don’t see that causing great concern on the part of investors in the Philippines just yet," Tan told ANC's Market Edge with Cathy Yang.

The peso's weakness "on a net net basis is also good for the market," said AB Capital Securities analyst Lexter Azurin.

"I don’t think there is no need to worry about the peso. We know the government is importing," Azurin told Market Edge.

Bangko Sentral ng Pilipinas Governor Nestor Espenilla last week said the public shouldn't "stress" over the exchange rate, adding regulators were "managing" excessive volatility.