SINGAPORE—The Philippine peso on Tuesday fell to its lowest in 11 months on concern widening credit-market losses will deepen a global economic slump, encouraging investors to reduce holdings of emerging-market assets.

The local currency dropped the most in more than two weeks as regional and US stocks declined on speculation American International Group Inc. will post a loss. Philippine import growth accelerated for the first time in five months in June, the National Statistics Office said in Manila Tuesday.

“Investors are pulling out of their risky investments,” said Vishnu Varathan, regional economist at Forecast Singapore Pte. The imports figure “adds to sentiment that the peso should weaken.”

The currency dropped 0.8 percent to P45.995 per dollar at the 4 p.m. close in Manila compared with P45.64 on August 22, according to the Bankers Association of the Philippines. Local financial markets were closed Monday for a public holiday.

Philippine stocks fell for a sixth day as overseas investors sold more than they bought in 28 of the past 30 trading sessions, including Tuesday. (Bloomberg)

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