Peso strengthens as inflation cools, current account stabilizes: analyst

ABS-CBN News

Posted at Mar 06 2019 11:33 AM

MANILA -- Cooling inflation and a stabilizing current account position is aiding the peso's recovery against the dollar, with the local currency expected to end the year at the P52 level, an analyst said Wednesday.

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Inflation has returned to the central bank's 2 to 4 percent target range and concerns over the current account deficit are "largely priced in" by the market, said Khoon Goh, head of Asia research at ANZ Banking Group.

"For the peso, we're expecting it to pretty much trade sideways," Goh told ANC's Market Edge.

The peso was the strongest Asian currency in February, he said.

Another interest rate hike from the Bangko Sentral ng Pilipinas is unlikely this year with easing inflation.