Philippine Peso Falls to New Record Low on Rate View, Outflow

The Philippine peso fell to a new record low on mounting pressure from the prospect of more interest-rate cuts and further stock outflows.

The peso dropped 0.3% to 59.08 per dollar on Tuesday.

Traders are closely watching for potential moves from Bangko Sentral ng Pilipinas amid pledges to during periods of extended peso weakness. The currency is the worst performer in Southeast Asia.

“I expect BSP to come in and signal much more strongly to the market that they don’t want the peso to breach 59,” said Michael Wan , a currency strategist at MUFG Bank in Singapore. “The move has been quite fast and I see more push back by BSP in the near-term to signal some displeasure.”

A member of the central bank’s Monetary Board on Monday said borrowing cost will be lowered by 25 basis points when it meets in December, with more reductions expected in 2026. Bangko Sentral ng Pilipinas cut its benchmark interest rate early October and warned of a deteriorating economic outlook.

Allegations over the widespread misuse of billions of dollars for flood-control projects have weighed on growth prospects and rattled investor confidence. Foreign funds have net sold $79 million of the nation’s equities in October, poised for the biggest monthly outflow since May. The benchmark stock index is hovering close to the lowest since April, in contrast to gains in the broader Asia region that pushed a regional to a record high.

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