By Gil C. Cabacungan Jr.
Inquirer News Service
THE PESO is expected to continue its sizzling climb next year because of the implementation of the expanded value-added tax, according to a leading European investment bank.
In a report dated Nov. 3, Swiss financial services giant UBS said it had junked its old forecast of the peso plunging to 56 to the US dollar by the end of the year and the next.
UBS now sees the peso hitting 54 by the end of the year and 53 by the end of 2006.
The last time the peso touched the 53 level was in May 2003.
The peso gained 3 percent against the dollar in the past month and hit a five-month peak of 54.55 against the greenback last week. It is on course to end the year as Asia’s best performing currency, according to analysts.
Yesterday, the peso closed at 54.65 against the dollar.
Hmmm… Asia’s best performing currency this year. Who knew? Although I wish we could go back to the days when the peso exchange rate was about P25.00=$1.00. That will not just be a sizzle but a full blown forest fire!