Investing.com – The Philippine peso is nearing a record low as the country’s central bank, the Bangko Sentral ng Pilipinas (BSP), plans further interest rate cuts amid slowing economic growth. The next BSP decision is expected to be made on February 13.
According to Bloomberg News, financial institutions such as Goldman Sachs Group Inc. (NYSE:)., Barclays (LON 🙂 Plc and Fitch Solutions predict that the peso could reach 60 per dollar by mid-year.
On Monday, the currency was trading at 58.420, close to the historic low of 59 per dollar reached in December.
Asian markets are feeling the impact of a sturdy dollar as investors consider the impact of Donald Trump’s presidency in the US. Earlier this month, Asian currencies hit a decade low against the dollar, although they have since recovered some of their losses.
The peso has been particularly strenuous hit, falling 2.4% since the BSP began cutting interest rates, outpacing regional peers and the Federal Reserve. The BSP intervened in the foreign exchange market to curb currency volatility, cutting rates by a total of 75 basis points since August.
The bank is prepared to continue cutting interest rates, although potentially at a slower pace due to geopolitical tensions and uncertainty about U.S. policy.
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