(Bloomberg) — The Philippine peso weakened past the closely watched 57-per-dollar level for the first time since late 2022, as expectations the Federal Reserve will delay interest-rate cuts weighed on risk assets.
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The peso dropped as much as 0.4% to 57.20 per dollar on Wednesday, the lowest since November 2022. Governor Eli Remolona on Monday said he’s comfortable with the peso’s current level and that the central bank has hardly been intervening in the foreign-currency market.
Remolona described 57 as a “weak support level,” meaning it’s not a key focus for authorities. However, the level is still being watched as Remolona in September signaled officials were intervening to defend the peso there to prevent it from weakening further.
The US dollar has regained strength in recent days following the rise in Middle East tensions and as Fed Chair Jerome Powell signaled policymakers will wait longer than previously anticipated to cut rates following a series of surprisingly high inflation readings.
Central banks across emerging markets have stepped up support for their currencies. South Korean officials ramped up their warnings over weakness in the won with Bank of Korea Governor Rhee Chang-yong describing recent moves as a little excessive.
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