A LIKELY Federal Reserve (Fed) rate cut in September helped lift the peso higher on Friday but fears of a US recession weighed on the stock market, which closed out the week on a down note.

The currency strengthened by 25 centavos to close at the day's low of P58.08 against the dollar while the benchmark Philippine Stock Exchange index (PSEi) shed 88.53 points, or 1.32 percent, to 6,605.30.

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