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Philippine Peso May Slide to an All-Time Low as Trade Deficit Widens

  • Currency’s 13% slump this year may spur more intervention
  • Nation’s trade deficit exceeded $5 billion in past four months
A shopper hands Philippines' Peso at a market in Mandaluyong.
A shopper hands Philippines' Peso at a market in Mandaluyong.Photographer: Iya Forbes/Bloomberg
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The Philippine peso may extend its record-setting slump against the greenback as billions of dollars of trade deficits weigh on the currency, increasing pressure on the central bank to intervene to slow its descent.

The peso may slide to an all-time low of about 62 against the dollar as early as this year, about 4.8% weaker than Monday’s close, according to ING Groep NV, Bank of the Philippine Islands and eMBM Services. The currency has slumped more than 13% this year, and is one of the worst-performers in Asia.