Predictions on the Peso-Dollar exchange rate in 2008

The Philippine Peso is Asia’s best performing currency of 2007, closing 18.8% higher at P41.28 at the end of last year.

The runners-up were: Indian Rupee (which grew 12% in 2007); Thai Baht (7%); Malaysian Ringgit (6.4%); Chinese Renminbi (6.88%); and Singapore Dollar (5.9%).

But the buck does not stop there. The Philippine currency is expected to further strengthen in 2008, with most market watchers predicting that the peso will stabilize below the P40-level. One analyst even predicted that the peso will touch P35 this year.

Below is a collection of prediction of the Peso-Dollar exchange rate in 2008:

“Peso can further appreciate to P37.50 in 2008″
- a report by CitiGroup

“As much as P38.00 by early 2008″
- Michael G. Manuel, CEO of Sun Life of Canada (Philippines)

“Hitting P38.00 is already almost a certainty”
- Ramon Lim, treasurer of Philippine National Bank

“We’re looking at P37.00“
- Roland Avante, Chinatrust Commercial Bank treasurer

“Peso likely to zoom to P35.00-37.00 against the greenback”
- Antonio Agcaoili Jr., Asia United Bank senior vice president

“Peso might break into the P39.00 level but only briefly this year”
- Jose Emmanuel Hilado, chief foreign exchange dealer at Banco de Oro-EPCI

“Peso will rise to P37.00 this year and further to P30.00 next year.”
- BNP Paribas

“Peso at P40.00“
- American Express Bank

“P41.00 is to $1 over the next 12 months”
- Bear Stearns

What’s your prediction on the exchange rate? Do you think it will settle below P40? Will it reach P35 this year?

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• phillipines dollar rate in 2008