MANILA - The peso may fall to P53 to the dollar within the year despite the country's strong growth and sound economic fundamentals, according to a global foreign currency trading house on Monday.
Roberto D'Ambrosio of Alpari Research and Analysis told ANC's Market Edge he expects the peso to trade between 50 to 53 to the dollar until the end of 2017.
D'Ambrosio, however, said the weakness of the peso is expected as government spending on infrastructure contributes to current account deficits.
He also said the current weakness of the peso is good for long-term growth.
"Actually I don't see it as a problem, because on the contrary I believe that this kind of approach will serve the economy in the long term--supporting the export (industry) and raising the value of remittance from foreign workers," he said.
The country posted a balance of payments (BOP) deficit of $678 million in July, bringing the total BOP deficit for the year to $1.384 billion, according to data from the Bangko Sentral ng Pilipinas.
D'Ambrosio added that the country's growth prospects remain good this year and the Philippines will likely be among the 10 fastest growing economies in the world.