Peso hits new record low at ₱63.52 per dollar

Peso sinks to fresh record low

The Philippine peso extended its slide on Thursday, Oct. 22, 2026, closing at a new historic low of ₱63.52 per US dollar. The local currency weakened by 15.9 centavos from its previous record close of ₱63.361 per dollar, marking another leg down despite recent policy moves aimed at containing inflation.

The peso opened the session at ₱63.31 and traded between ₱63.30 and ₱63.545 against the US dollar.

The latest decline pushed the currency to its 35th record low of the year and its sixth in October. It was also the fourth consecutive trading day that the peso ended at a historic low, underscoring the persistence of downward pressure on the local unit.

Monetary tightening alongside currency weakness

On the same day, the Bangko Sentral ng Pilipinas raised its target reverse repurchase rate by 50 basis points to 5.5%, an almost two-year high. This was the central bank’s fourth straight policy meeting with a rate increase, an outsized move intended to manage inflation expectations in the face of rising price pressures.

Despite the surprise magnitude of the hike, the peso continued to weaken, prompting questions about the effectiveness of elevated interest rates in supporting the currency. One bank economist noted that the peso’s tumble to a historic low, even after the large rate adjustment, suggested that higher rates alone may not be sufficient to strengthen the currency.

BSP Governor Eli M. Remolona Jr. said the central bank is not raising the policy rate specifically to defend the peso. He explained that intervention in the foreign exchange market is used mainly to smooth swings that risk becoming inflationary, based on internal estimates of how much currency movement could feed through to consumer prices.

Drivers of peso depreciation

Analysts and market participants pointed to a combination of external and domestic factors behind the peso’s ongoing weakness. A strong US dollar amid uncertainty over US interest rates has put pressure on many emerging market currencies, including the peso.

High global oil prices, partly linked to Middle East tensions, are increasing the Philippines’ import bill and adding to demand for dollars. A research fellow highlighted that these external pressures are amplified by the country’s reliance on imports and by domestic vulnerabilities such as external deficits and persistent demand for foreign currency.

Traders also cited growing domestic inflation concerns as a factor that could intensify the peso’s weakness. Some market participants said that comments from Governor Remolona on foreign exchange intervention tactics weighed on the local unit, as investors assessed how actively the central bank might manage currency moves.

Inflation concerns and policy stance

Governor Remolona acknowledged that the central bank is concerned about the peso’s depreciation because it could be inflationary. He reiterated that the BSP’s primary focus is on price stability, with exchange rate actions calibrated to prevent excessive volatility that could spill over into broader inflation.

Year to date, the peso has weakened by ₱4.73 from its closing level of ₱58.79 per dollar on Dec. 29, 2025.