Philippine Peso Hits Record Low of P63.95 Per Dollar

The Philippine peso closed at a record low of P63.95 to the U.S. dollar on Monday, October 26, 2026. This marked the 32nd time the currency ended the day at an all-time low this year and the fifth consecutive trading day of record declines. The peso has depreciated 8.78 percent since December 2025.

Market volatility is driven by rising global oil prices and expectations of a rate hike from the Federal Reserve System. Additionally, the dollar strengthened following signals from Donald Trump regarding potential U.S. military action against Iran after the November 3 midterm elections. Domestically, fears of stagflation—characterized by slow growth, high unemployment, and rising prices—have weighed on the currency.

The Philippine Stock Exchange index also dropped 1.53 percent to 5,641.18, its lowest level since June 2026. Investors are reacting to persistent inflation and a 14-month contraction in public infrastructure spending.

To combat these pressures, the Bangko Sentral ng Pilipinas recently raised the benchmark interest rate by 50 basis points to 5.5 percent. Despite these hikes, the currency's slide continues to increase the cost of dollar-priced imports like fuel and raises the cost of servicing the country's $154.9 billion external debt.