(Bloomberg) -- The Philippine peso dropped toward the psychological milestone of 59 per dollar, close to setting a fresh record low, as expectations for imminent easing hurt its appeal relative to regional peers.
The peso slipped 0.2% to 58.99 on Wednesday, bring its slump this year to about 6%. Pressure is growing as the central bank is expected to lower the key interest rate by 25 basis points on Thursday, according to a Bloomberg survey.
“The prospect of a cut is putting pressure on the peso, on top of an environment where the dollar is very strong,” said Michael Ricafort, chief economist at Rizal Commercial Banking Corp. in Manila. “But the central bank has a proven track record of maintaining the cap on peso weakness at 59.”
An index of Asian currencies slid to the lowest in more than two years this week as pessimism over China’s economic outlook deepened and on speculation a Trump administration will drive dollar gains. The peso last touched 59 in November, and that level has served as a key support since 2022.
Policymakers have said they will intervene in the foreign-exchange markets to curb excess volatility, while allowing the peso’s level to be determined by market forces.
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