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2025-12-18 10:34:30
[Philippine Peso May Weaken in the Second Half of 2026] 1. Analysts at Maybank Securities predict that the Philippine peso may weaken in the second half of 2026. Key reasons include the expected resurgence of the US dollar and the continued drag from domestic headwinds. 2. Domestically, the flood control funding corruption scandal is having multiple negative impacts: it is not only suppressing government spending and economic growth but also dampening foreign investor sentiment, thus putting pressure on portfolio flows and local assets. 3. Analysts point out that this drag on growth also increases the likelihood of further monetary easing by the Central Bank of the Philippines. The bank's economists expect the Central Bank of the Philippines to cut interest rates by an additional 50 basis points by the end of 2026, which would weaken the Philippine peso's interest rate advantage and reduce its arbitrage appeal to foreign investors.
