During early deals on Tuesday, the Philippine peso traded near a 2-month high against its US counterpart on expectation of an interest rate cut by the Philippine central bank this week to stimulate economic growth.

The Bangko Sentral ng Pilipinas is likely to deliver its fourth interest rate cut in more than four months as the inflation resumed its decline to a one-year low in March. The Philippines consumer price annual inflation slowed to 6.4% in March from 7.3% recorded in February.

The Bank may slash interest rate by a quarter percentage point to 4.5% this Thursday. The central bank has reduced interest rates by 1.25 percentage points since December to help soften the impact of the global recession on the Philippine economy.

The Philippine peso showed mild weakness against the dollar during today's early Asian trading, but recovered the losses soon after. The peso thus climbed from 47.99 to 47.76 by about 1:10 am ET. The pair closed Monday's New York session at 47.77.

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