Peso to gain further vs dollar in near term: Mizuho Bank

ABS-CBN News

Posted at Jul 24 2019 09:34 AM | Updated as of Jul 24 2019 09:51 AM

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MANILA -- The peso is likely to maintain its strength against the dollar in the near term, with the greenback poised to weaken and as the local unit rides on positive economic news, an analyst said Wednesday.

The peso opened at P51.225 on Wednesday from P51.14 the day before. The local currency is among the best performing in the region as stocks entered bull market territory.

Investors are anticipating credit rating upgrades from Moody's and Fitch after S&P raised its score on the Philippines in late April, said Vishnu Varathan, head of economics and strategy at Mizuho Bank.

"The case for the dollar is to test further on the downside" with the Federal Reserve expected to cut interest rates further, Varathan told ANC's Market Edge.

Investors are also likely to shift to the peso due to negative rates in the Eurozone area, Varathan said.

The peso could settle at P52.50 to the dollar towards the end of the year, he said, adding uncertainty over the US-China trade war could push it to P53.