MANILA: The Philippine peso breached the key psychological level of 63 per dollar for the first time, intensifying pressure on the central bank to defend the currency.
The peso fell as much as 0.5% to a record low of 63.150 per dollar Thursday. Southeast Asian peers were also largely weaker.
“We are headed to uncharted territory for the peso,” said Michael Ricafort, chief economist at Rizal Commercial Banking Corp. in Manila. “Additional rate hikes are now more likely to stabilise the currency.”
Asian currencies are under renewed pressure as the stock selloff deepens, led by losses in the South Korean won and Taiwanese dollar. In the Philippines, the central bank is forecast to raise interest rates by 25 basis points next week, according to a Bloomberg survey.