Money

Wilson Sy thinks peso will rise to 48:$1…but all for the wrong reasons

Stock broker Wilson Sy expects the peso to strengthen to 48 to the US dollar, its best level in four years, but not because of a robust economy.

“The Philippine peso indeed has shown remarkable strength. In fact, it is the best performing Asian currency year-to-date. But it’s for all the wrong reasons – weak US dollar and weak Philippine economy as shown by the drop in our imports,” said the Philequity Fund director.

After breaching the 49.20 support level, Sy said the peso should hit the 48 support level with 45.50 next

With the peso trading below the 50-peso level mark for nearly a month, Sy said it was time to reassess the dollar as a safe haven and consider other currencies and commodities. ”The longer the peso trades below 50, the more significant this number becomes,” said Sy noting that the 50-peso level provided the critical support and resistance during the past 20 years.

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