To those earning in or holding US dollars, brace yourself because the Philippine Peso might appreciate some more and even increase to P38 by next year.
That’s according to a BusinessWorld article published today:
The peso may appreciate towards P41.50 per dollar by year end and to as much as P38 by early 2008 as dollar remittances from overseas Filipino workers (OFWs) and inflows from the asset sale of local firms surge.
“The surge of dollars gives support to the thought that the peso will be stronger than what it is today… Itâ€™s a more sustainable trend right now,” Michael G. Manuel, chief investment officer of Sun Life of Canada (Philippines), Inc. told reporters yesterday.
Mr. Manuel attributes the possible appreciation of the Philippine currency to the sale of assets by local companies, increased remittances of Overseas Filipino Workers (OFW), and expected interest rate cut of the US Federal Reserve.