Philippine Peso Drops to Fresh Record Low as Central Bank Says February Rate Cut on Table

The Philippine peso declined to a fresh record low after the central bank signaled an interest-rate cut and as traders assessed its tolerance for a weaker currency.

The peso fell as much as 0.2% to 59.34 per dollar on Wednesday. It breached the previous record low of 59.26, which it hit in late October.

The currency has been under pressure for months as a government corruption scandal sapped investor confidence and hurt economic growth. Signals from the central bank that it isn’t too worried about currency weakness and for more interest-rate cuts are also adding to bearish sentiment for the peso.

When asked if there’s a risk the peso will hit a new record low this year, Governor Eli Remolona on Tuesday said the central bank doesn’t look at levels . Instead, monetary authorities “look at whether — if the peso depreciates at all — whether the depreciation is sharp enough” to impact inflation, he said.

Remolona also said a rate cut is on the table in February.