The Philippine peso weakened past the ₱60-to-the-dollar mark during intraday trading on Thursday, hitting as low as ₱60.40 before opening at ₱59.90.
President Ferdinand Marcos Jr. had earlier expressed concern over the peso’s decline, while the Bangko Sentral ng Pilipinas (BSP) reportedly intervened in the foreign exchange market this week to prevent further depreciation.
A weaker peso complicates the country’s struggle with surging oil prices, as crude and refined fuels—priced in dollars—become more expensive in peso terms.
Other imports such as rice, flour, and electronics are also expected to cost more. The BSP has said it is closely monitoring the inflationary impact of rising oil costs.
The depreciation also increases the peso value of the country’s foreign debt obligations, though families of overseas Filipino workers (OFWs) initially benefit from higher peso conversions of remittances. Analysts, however, warn that inflation eventually erodes this advantage.
The peso had been strengthening before the US-Israeli attack on Iran on February 28, trading at ₱57.665 to the dollar on February 27 after recovering from ₱59.46 in mid-January.
Meanwhile, the BSP reported that the country’s Gross International Reserves (GIR) reached a record $112.7 billion as of end-February 2026.
“This level provides a robust external liquidity buffer, equivalent to 7.5 months’ worth of imports of goods and payments of services and primary income. It covers about 4.2 times the country’s short-term external debt based on residual maturity,” the BSP said.