Philippine Peso to Extend Slump to Record Low on Rate Cut Bets
- Peso hovering near 59 which acted as line in sand in 2022
- BSP Governor signaled central bank may cut rates in August
Workers handle blocks of ice outside a market in Bacolod, the Philippines.
Photographer: Veejay Villafranca/BloombergThis article is for subscribers only.
The Philippine peso looks set to extend its slump toward a record low as investors see the nation’s central bank cutting interest rates ahead of the Federal Reserve.
The peso has hovered around its 2022 low of 59 per dollar for most of June and has weakened almost 6% this year. Bearish sentiment is intensifying after Bangko Sentral ng Pilipinas signaled last month that rate cuts may begin as early as August, as some strategists see the currency weakening to 60 by the end of the year.