The Philippine peso could soon hit another historic low of 63 to the US dollar in the next couple of days after Monday’s close of P62.86 to $1, an economist said Tuesday.
Prof. Emmanuel Leyco said a rise in US Federal Reserve interest rates would put even more pressure on the peso.
“Sa susunod na 2 araw ay magmi-meeting ang Federal Reserve at inaasahan ng marami na magtataas ito ng interest rate. Pag nagtaas ng interest rate ang Amerika, napakalaking impact n’yan sa Pilipinas. Sasadsad ang piso kontra dolyar. Baka bukas makalawa, baka sumampa na tayo sa P63 (vs dollar),” he said in a DZMM interview.
First Metro Securities market consultant Aaron Say earlier warned technical charts point to a potential drop in the Philippine peso to the 65-level against the US dollar in the medium to the long-term.
Economists said rising crude oil prices at $100 a barrel have left the Philippine currency exposed as the Philippines uses dollars to import the commodity.
In the interview, Leyco urged the Philippine government to suspend excise taxes on fuel products and reduce the value added tax, saying that both rich and poor will benefit from slashing taxes.
The economist also downplayed the effects of government cash aid programs, saying many sectors do not benefit from government aid including the middle class.
“Walang ayudang natatanggap ang middle class. Napakabigat na ang dinadala ng middle class dito sa pagtaas ng petrolyo,” he said.