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Downtrodden Peso May Extend Drop on Philippine Rating Risk

  • Fitch lowered the nation’s outlook to negative from stable
  • Virus outbreak to erode public revenue and add to debt burden
Indonesian Rupiah, Indian Rupee And Filippino Peso As Gloom Lifting From Asia's Emerging Currencies After Rate Hikes
Photographer: Brent Lewin/Bloomberg
Updated on

July was a brutal month for the Philippine peso and there appears to be little respite on the horizon.

After capping its steepest monthly decline in over three years, the currency could extend losses due to a worsening virus outbreak and the risk of a sovereign rating downgrade. It may drop toward 51 per dollar, a level last reached in April 2020, according to ING Groep NV, Security Bank Corp. and Malaysian Banking Bhd.