Investing.com — The Philippine peso is approaching a record low as the country’s central bank, Bangko Sentral ng Pilipinas (BSP), plans further interest rate cuts amid slowing economic growth. The BSP’s next decision is expected on February 13.
According to Bloomberg News, financial institutions such as Goldman Sachs Group Inc (NYSE:)., Barclays (LON:) Plc, and Fitch Solutions predict the peso could reach the 60-per-dollar mark by midyear.
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 strong dollar as investors consider the effects of Donald Trump’s presidency in the US. A measure of Asian currencies reached a decade low against the dollar earlier this month, although it has since recovered some of its losses.
The peso has been particularly affected, falling 2.4% since the BSP began reducing interest rates, outpacing regional counterparts and the Federal Reserve. The BSP has intervened in the foreign-exchange market to limit the currency’s volatility, decreasing rates by a total of 75 basis points since August.
The bank is prepared to continue reducing rates, although potentially at a slower pace due to geopolitical tensions and uncertainties surrounding US policy.
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