MANILA– The peso is poised for relief on dollar remittances from Filipinos overseas in the run up to the Christmas holidays, analysts said Tuesday.
The peso opened at P54.15 to the dollar, from P54.11 on Monday, holding at its weakest in nearly 13 years. Analysts have blamed the peso’s slide on a widening trade deficit as imports continue to outpace exports.
The Bangko Sentral ng Pilipinas is seen supporting the local currency at the P54.28 level, said First Metro Securities analyst Paul Angelo.
Governor Nestor Espenilla earlier said the BSP would defend the peso against speculators.
“In the coming months, higher remittances could offer some support to PHP (peso), but we maintain our concerns over the broad balance of payments…” according to a research note from Nomura Global Markets Research.
Nomura said the peso was being bragged by portfolio outflows and the weakening of other emerging market currencies. It also flagged the US-led trade war as a risk.
Christmas remittances “will really help mitigate” pressure on the peso, said First Metro’s Angelo.
Cash remittances from overseas Filipinos grew 5.2 percent in July to $2.4 billion, with the 7-month total at $16.6 billion. (ABS-CBN News)
