Peso to finish at P41.1:$1 by year-end


Posted at Nov 06 2012 03:48 PM | Updated as of Nov 07 2012 08:34 AM

MANILA, Philippines - The peso is projected to close at P41.10 against the dollar at the end of the year, the Institute of International Finance said.

In its latest Global Economic Monitor, the IIF added the peso is expected to further appreciate to P41 against the greenback at the end of next year.

The peso closed at P41.240 against the dollar on Monday, stronger than its P43.84 finish against the greenback in end-2011.

The local currency so far strengthened by 6.5% this year, even reaching a four-year high of P41.175 against the dollar last month.

IIF noted the peso continues to be one of Asia's strongest currencies despite global uncertainties due to continuous remittances from overseas Filipinos and monetary easing implemented in developed countries.

The strength of the peso is also being attributed to the country's strong macroeconomic fundamentals, and IIF expects the Philippine economy to expand by 5.7% this year and 6.5% next year.

The Philippines saw its gross domestic product rise to 6.1% in the first half from 4.2% in the same period last year.

The government hopes to grow the economy by 5-6% this year, and by 6-7% in 2013.