The Philippine peso remains Asia’s “weakest link” despite the central bank’s recent interest rate increase, as policymakers confront a delicate balancing act between bringing inflation under control and supporting an economy that has struggled to gain momentum.

For Asian currencies, the key question is increasingly whether inflation will remain persistent enough to warrant further monetary tightening, MUFG Bank Ltd. said in a note on Monday.

The dollar’s recent weakness had provided some support for Asian currencies, but that cushion may be fading, the global bank noted.