MANILA: The peso weakened past ₱63 to the US dollar for the first time, hitting a new record low in early trading, data from the Bankers Association of the Philippines (BAP) showed.
It touched ₱63.15 per dollar, beating the previous intraday low of ₱62.925 set on 15 September. It opened at ₱62.83.
It closed Wednesday (October 14, 2026), at ₱62.87, just three centavos short of the record-low close of ₱62.90 on 8 October.
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Record-low close
By the end of the Thursday, the peso had set another record, closing at ₱63.06 per dollar, trading between ₱62.75 and ₱63.15, and surpassing the previous record-low close of ₱62.90.
The BAP morning weighted average was ₱63.035, rising to ₱63.075 in the afternoon, which points to further weakness later in the day.
In terms of UAE dirhams, the Philippine peso (PHP) is back above the Dh17 mark coming in at DH17.11 slightly higher than its previous close.
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Bloomberg reported the move intensifies pressure on the central bank to defend the currency, and that Southeast Asian peers were also largely weaker.
Why the peso keeps falling
Oil is the main driver. Before the war, the Philippines imported almost all of its oil from the Gulf. Higher oil prices mean importers need more dollars to pay for fuel, which adds demand for the greenback and pushes the peso down.
Safe-haven demand for the dollar. The Middle East conflict has also driven investors to safe assets like the US dollar.
Structural weaknesses. Robeco strategist Philip McNicholas pointed to the country’s large fiscal and current account deficits, combined with high inflation, which leave the peso vulnerable to swings in global risk sentiment.
A long slide since the war began
Before the war: The peso closed at ₱57.66 at the end of February. By my calculation, it has now lost about 9% against the dollar.
March-May: The peso hit record lows by 30 March and a record close of ₱61.64 on 14 May.
September-October: it fell to ₱62.265 in early September, then set fresh lows on 15 September and 8 October before today’s break above ₱63.
Not Asia-wide: Japanese bank MUFG said earlier in the year that the Philippine peso was the biggest loser among regional currencies because of the economy’s high exposure to imported oil.
What the central bank has done
The Bangko Sentral ng Pilipinas (BSP) has raised rates.
Its policy rate stands at 5% after three consecutive hikes totalling 75 basis points since April.
Analysts say the effect has been limited. Chinabank Research said the hikes provided only limited support against persistent external headwinds.
The BSP also steps into the currency market, but selectively. Analysts say it has limited intervention to periods of excessive volatility or when depreciation has a material inflationary impact.
What it means for Filipinos
A weaker peso makes imports, especially fuel, more expensive, which feeds into prices. Inflation was 6.1% in August, double the central bank’s target of about 3%. Manila Bulletin reported that inflation reached 7.2% in September.
One economist said the central bank’s 5% policy rate is now being outpaced by rising prices, and suggested the government consider suspending the fuel excise tax.
The picture is not all negative. A weaker peso raises the peso value of dollar remittances. Stronger remittance inflows for the holiday season could provide some support.
What to watch
Oil prices and developments in the Strait of Hormuz
Any BSP move to slow the peso’s slide
The October inflation reading
Whether the peso holds above ₱63 or recovers