The Philippine peso slipped to a new record low of ₱59.46 against the US dollar on Thursday, after closing at ₱59.44 the previous day.
Remittances from overseas Filipinos had helped the peso regain footing towards the end of 2025, keeping it within the ₱58-to-the-dollar range. However, following the holiday influx of dollars, the peso has again weakened.
Analysts noted that a weaker peso benefits families of overseas Filipino workers, who get more pesos from remittances, and also helps exporters and BPOs by making services and goods more competitive.
At the same time, a depreciating peso makes imports like oil and machinery more expensive and raises the peso cost of dollar-denominated debt.
Wendy Estacio, head of research at Unicapital Securities, said the peso is unlikely to hit ₱60 to the dollar soon.
“We are looking at…a widening interest rate differential from the US, because US Fed is actually looking at around 50 basis points in total for the rate cut. Well, the BSP is looking at just 25 basis points,” she said.
“So I think given that scenario, we can expect the peso to be supported for this year,” she added, noting that remittances and BPO inflows may help stabilize the currency.