The Philippine peso closed the trading week at a new record low against the United States (US) dollar, reflecting mounting global economic pressures and continued weakness among emerging Asian currencies.
The local currency settled at around ₱61.64 per US dollar, marking its weakest level on record and extending the peso’s depreciation trend observed in recent months. The new closing rate surpassed previous historic lows recorded earlier this year.
Market analysts attributed the peso’s decline primarily to external factors, including elevated global oil prices, geopolitical tensions abroad, and sustained strength of the US dollar. Countries that rely heavily on imported fuel, such as the Philippines, have faced stronger currency pressures as rising oil costs increase demand for dollars to pay for imports.
Economists also noted that expectations of prolonged high interest rates in advanced economies continue to favor the US dollar, further weighing on the peso and other regional currencies.
Despite the depreciation, financial authorities are expected to closely monitor currency movements and inflation risks, particularly as a weaker peso may lead to higher import costs and increased prices of fuel and consumer goods.
The Bangko Sentral ng Pilipinas (BSP) has previously emphasized that exchange rate movements remain market-driven but manageable, stressing that strong remittance inflows and stable domestic economic fundamentals continue to provide support to the Philippine economy.
Written by Melrose Kyrene Aquino
Melrose Kyrene Aquino is a dedicated campus journalist and contributor. Their insightful writing sparks meaningful conversations and keeps the community informed.
