THE Philippine peso depreciated for the third consecutive trading day on Thursday, closing at ₱63.06 against the US dollar — down 19 centavos from Wednesday’s finish of ₱62.87 — and surpassing the previous record low set on October 8 at ₱62.90.
This marks the 27th new low for the local currency so far in 2026, as persistent downward pressure continues to erode its value. Economists attribute the decline to what one analyst described as a “series of unfortunate events” weighing on investor sentiment and market confidence.
Several overlapping factors are driving the trend, including sustained strength in the US dollar, elevated global crude oil prices, and wider fiscal concerns at home.
The local currency has struggled throughout the year amid higher import costs, particularly for energy and food, which have widened the country’s trade gap and increased demand for greenbacks. Market observers note that the peso’s resilience has been tested by both external headwinds and domestic uncertainties, with the breach of the psychological ₱63 level likely to keep upward pressure on prices of imported goods and fuel.
Economists warn that further weakness could translate into higher inflation, potentially prompting the Bangko Sentral ng Pilipinas to maintain elevated interest rates or intervene more actively in the foreign exchange market. Policymakers are closely monitoring the situation, though analysts caution that a quick reversal is unlikely unless global conditions shift or domestic reforms boost investor confidence. Consumers and businesses are advised to prepare for sustained volatility in the coming weeks, with the currency’s performance heavily dependent on US monetary policy and the pace of local economic recovery.
metrosundaily
