peso down
The Philippine peso slid farther on Th (February 24, 2022) against the The states dollar post-obit a spike in oil prices on supply disruption fears triggered past Russian federation's invasion of Ukrainian cities. Image Credit: Gulf News

Manila: The Philippine peso could weaken in the short erm, farther putting pressure on the country'southward currency with demand for dollars up to encompass higher import receipts as the economy continues to reopen, according to a United states investment house.

The peso slid Friday (May xiii, 2022) to 52.43 vs US$, after it weakened on Th to 52.39, according XE.com.

Officially rate was 52.38 on Friday, from 52.2670 on Thursday, based on Philippine central depository financial institution'southward reference exchange charge per unit message.

New York-based GoldmanSachs has predicted that the Us dollar volition strengthen further over the adjacent three months against the Philippine currency.

Overvalued dollar?

In full general, all the same, Goldman Sachs sees the greenback every bit "highly overvalued" that information technology expects the US currency to weaken against Asian currencies for vi months to a yr.

Withal, a further drop in the value of Philippine peso is expected.

"We are surly on the PHP as re-opening of the economy should lead to a widening of the current business relationship deficit," Goldman Sachs said.

Last week, the Bangko Sentral ng Pilipinas (BSP) said its gross international reserves (GIR) decreased slightly to $106.viii billion as of the end of April from $107.3 billion a month before. Nonetheless, the BSP said its reserve assets—comprising foreign investments, golden, foreign substitution, reserve position in the International Budgetary Fund, and special drawing rights—continued to represent a more than than adequate external liquidity buffer. The latest GIR level is equivalent to 9.4 months' worth of imports of goods and payments of services and primary income. Such reserves are considered adequate if they tin comprehend at least three-months' worth. In the showtime quarter of 2022, the net outflow of short-term investments that are registered with the BSP narrowed significantly to $16 million from the $467 million net outflow recorded in the same menstruum of 2021.