Philippine peso hits record low of ₱63.81 against the US dollar

Floyd Brenz., Philippine Canadian Inquirer
October 26, 2026

Photo Courtesy: BusinessWorld

The Philippine peso continued its historic decline on Monday, October 26, weakening to a record low of ₱63.81 against the US dollar as investors monitored developments ahead of the US Federal Reserve’s upcoming policy meeting.

The latest drop extends the currency’s slide beyond the ₱63-per-dollar level, putting further pressure on an economy reliant on imported fuel, raw materials and other essential goods.

The peso’s weakness comes amid persistent strength in the US dollar and uncertainty over the direction of American monetary policy. Expectations surrounding the Federal Reserve’s next move have influenced currency markets, as interest-rate decisions can affect demand for dollar-denominated assets.

Rising global oil prices have also added to the pressure. Because the Philippines imports much of its energy requirements, more expensive oil increases the country’s import bill and demand for dollars to pay for overseas purchases.

The currency’s depreciation could have consequences for households and businesses. Importers may face higher costs for fuel, food ingredients, machinery and other goods, potentially contributing to inflation if companies pass those expenses on to consumers.

Filipinos receiving remittances from relatives working overseas, however, may receive more pesos when converting money sent in US dollars, although the benefit depends on transfer fees and the amount remitted.

The Bangko Sentral ng Pilipinas has raised interest rates to help contain inflationary pressures, but tighter monetary policy does not automatically reverse currency weakness, particularly when external factors continue to support the dollar.

The peso’s continued decline highlights the challenges facing policymakers as they balance inflation control, economic growth and financial stability amid volatile global markets.

Market participants are expected to watch the Federal Reserve’s upcoming meeting for signals that could influence the dollar and determine the peso’s next movements.