Philippines: Peso seen to range between 44-46 to $1 in second half

By Ted P. Torres Sunday, July 15, 2007

The peso is expected to hover at the 44 to 46 range against the dollar for the rest of the year due to a rise in US and Philippine interest rates in the second semester, a top executive of a leading foreign bank said.
Jose Arnulfo Veloso, treasurer and head of global markets of HSBC Philippines, said the surprise increase in US Fed funds rate and a possible shortfall in the Philippine government’s revenue collections in 2007 may cause some weakness in the peso.
He said the peso will occasionally test the 42 to 43 levels but will eventually return to the 45 level. “The 45 to the dollar is also called the equilibrium level,” he added. [Read more]