The value of Philippine Peso has reached its lowest level at P49 per dollar in nearly 8 years.
The panic caused by Trump’s victory over rival Hillary Clinton was seen as a factor in the weakening of peso against US dollar.
“Markets are more sentiment driven. A lot of the panic moves in the market happened in the past 2 weeks. Moving forward, 49 to 50 is a very important threshold. At the moment, there should be no reason to break that and cause even more worry,” DA Market Securities chief equity strategist Nisha Alicer told ANC’s “Market Edge with Cathy Yang.”
“There was a panic buy in the US, wherein they’ve reversed the position, they’re actually more positive. It’s just a matter of realigning your portfolios towards what possibly would be Trump-friendly companies,” she added.
The weakening of peso will affect Philippines in terms of the boost in the remittances of overseas Filipino workers. Alicer also said that companies engaging in infrastructure and consumption will unlikely be affected by Trump’s victory.
In addition, companies which will be able to weather Trump’s protectionist policies are those companies which diversified into tourism while hosting BPOs.
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