MANILA – The peso continued to weaken against the dollar and may reach the P52 to P53 level next year, an analyst said Wednesday, with the government’s infrastructure program expected to drive growth in imports.
Investors, however, have anticipated the local currency’s slide, said BPI Securities analyst Riche Lim, who projects the peso falling to P51.50 to the dollar by year-end.
The peso opened at P51.48 to the dollar from P51.44 on Tuesday.
“The currency should continue to weaken, even heading towards next year, as we do infrastructure, continue to import a lot of materials,” Lim told ANC’s Market Edge with Cathy Yang.
Bangko Sentral ng Pilipinas Governor Nestor Espenilla said last month the peso's weakness was in line with economic fundamentals and would support growth by encouraging more investment in infrastructure.
President Rodrigo Duterte, who assumed office last year, has set a P8 trillion infrastructure program, including the first ever subway in Metro Manila and railway in Mindanao.