Philippine Peso Hits Record Low of P62.40 Against Dollar

The Philippine peso dropped to a record low of P62.40 against the US dollar on September 1, 2026. This depreciation marks a 5.79% decline from the currency's December 2025 close. The slide was driven by a strengthening US dollar, fueled by rising US Treasury yields and hawkish signals from US Federal Reserve Chair Kevin Warsh during the Jackson Hole Symposium. Additionally, geopolitical tensions in the Middle East pushed up oil prices, further weighing on the peso.

Bangko Sentral ng Pilipinas Governor Eli M. Remolona, Jr. stated that the central bank will manage sharp movements in the currency rather than defend a specific exchange rate level to avoid depleting reserves. While the bank may have intervened to smooth volatility, it has not committed to a fixed target.

Market analysts expect the peso to remain under pressure in the short term. However, some forecast a gradual recovery toward P61 in the first half of 2027, citing a narrowing trade deficit and improved fiscal positions as potential drivers for recovery.