Philippine Peso declines to record low as rate outlook in focus

The Philippine peso fell to a record low as traders viewed comments from the nation's central bank as dovish.

The peso fell as much as 0.2% to 59 per dollar on Thursday, a level it last touched in 2022. Central bank Governor Eli Remolona said Wednesday that interest rates may be cut or put on hold in December, depending on inflation and other economic data.

Asian currencies have weakened in recent weeks on the back of a stronger dollar, strengthened further this month by Donald Trump's election win as investors brace for heightened US-China trade tensions and potential tariff hikes.

"The focus is on whether BSP will cut rates and the impact on the peso," said Michael Ricafort, chief economist at Rizal in Manila. "We're also seeing dollar demand from importers taking advantage of cheaper oil and other commodities. But BSP will be curbing volatility and that will help support the peso."

The BSP has said it will intervene to curb excess volatility while allowing the peso's level to be determined by the market. The nation's foreign-exchange reserves were near a record high at $111.1 billion in October.