HSBC sees stronger peso this year


Posted at Aug 23 2016 07:30 PM

MANILA - The Philippine peso is seen to close at P45 to $1 this year as the country survives political and monetary uncertainty, the Hongkong and Shanghai Banking Corp. (HSBC) said on Tuesday.

"With the Philippine peso managing to escape these events relatively unscathed, we have turned more positive on the currency and have revised our year-end forecast for US dollar-peso to P45 from P48.5," the bank said in its latest Emerging Markets foreign exchange roadmap.

The peso moved to stronger footing with the election uncertainty and implementation of the interest rate corridor, HSBC said.

More foreign direct investments (FDIs) could look into the Philippines amid government's commitment to ease restrictions on foreign investments as well as to boost infrastructure spending, it added.

The peso gained P0.12 to close at P46.46 to $1 on Tuesday from Monday's P46.58 to $1.