DBS Group Research revises its year-end 2026 peso forecast upward due to widening trade deficits and elevated inflation.
DBS Group Research raised its year-end 2026 USD/PHP forecast to 62.7 from 57.8, citing persistent external and domestic economic pressures. The adjustment reflects concerns over trade deficits and inflationary trends.
The revision follows disruptions in the Strait of Hormuz and higher oil prices, which have exacerbated trade imbalances. Prior forecasts had not accounted for these sustained pressures, which are expected to weigh on the Philippine peso.
No immediate market reaction was specified in the report.