The peso ended the year stronger against the US dollar on Friday, gaining P0.18 to close at 50.635 from 50.821 a day ago.
The peso’s close at the last trading day of 2019 was also P1.945 or 3.7 percent stronger than 52.58 a year ago. Total volume traded stood at $1.33 billion, up significantly from the $1.1 billion a day ago.
East West Banking Corp. president and chief executive Antonio Moncupa said the strong momentum of the peso in 2019 would likely be carried over to 2020.
“The dollar may not be too strong in 2020. I think the dollar will likely hover near the P51 than P52… ,” Moncupa said.
A report by ING Bank Manila earlier said with the US-China trade war threatening, the Fed opted to slash policy rates three times in 2019, affording global central banks a chance to ease themselves and setting off a wave of investors back to higher-yielding assets in the emerging market space.
“The stark reversal in fortunes has helped bolster emerging market FX and equity markets with foreign investors returning, with the PHL also benefiting from the shift of tides with interest rate differential widening,” ING said.
The interagency Development Budget Coordinating Committee this month revised downward the peso-dollar exchange rate assumption to the range of 51 to 52 against the greenback in 2019 and 51 to P54 against the dollar from 2020 to 2022.
The peso reached its weakest level against the greenback in 2018 at 54.325 on Sept. 26 on the back of the lingering trade tensions between the world’s leading economic powerhouses the United States and China.
The peso closed 2018 at 52.58 and opened 2019 at 52.515 on Jan. 2.