Peso seen at P52 vs $1 towards year-end on trade war worries


Posted at Jun 06 2019 09:53 AM | Updated as of Jun 06 2019 10:05 AM

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MANILA -- Global trade tensions are will weigh on the peso in the long term, with the local currency likely to hold at the P52 level against the dollar towards the end of the year, an analyst said Thursday.

Lower yields in US treasuries could give the peso a boost in the near term, but it will likely weaken due to heightened concerns about the festering US-China trade war, said Vishnu Varathan, head of economics strategy for Asia and Oceania at Mizuho Bank.

The peso opened at P51.75 on Thursday from P51.78 on Wednesday.

"It's an acute case of fear that infiltrates the markets," Varathan told ANC's Market Edge.

The pick-up in inflation to 3.2 percent in May from 3 percent in April was seen by the market as "not too hot." The upward trend is unlikely to continue as oil prices go down, he said.