BUSINESS
Advocates Philippines
Peso Hovers Near Record Lows Against US Dollar
FILE
MANILA, Philippines — The Philippine peso continues to trade near historic lows against the US dollar in early 2026, reflecting sustained pressure on the country’s foreign exchange market amid global and domestic uncertainties.
As of January 7, 2026, the peso was trading at around ₱59.28 to ₱59.37 per US dollar, levels that are among the weakest on record. At this rate, one peso is worth roughly $0.0169, underscoring the currency’s ongoing softness against the greenback.
Market data show the peso recently touched a fresh record low near ₱59.37, driven by a strong US dollar and investor caution toward emerging-market currencies. Traders have also been weighing expectations of possible policy easing later this year, which could further pressure the peso.
The Bangko Sentral ng Pilipinas (BSP), however, has signaled that it is not rushing into interest rate cuts, after recent inflation figures came in higher than expected. Policymakers have indicated a cautious stance, balancing economic growth concerns with the need to avoid further weakening of the currency.
What’s Driving the Peso’s Weakness?
Several factors continue to shape the peso’s performance:
A strong US dollar and global risk aversion have pushed investors toward safe-haven assets, weighing on emerging-market currencies like the peso.
Economic growth concerns and shifting capital flows have added to volatility in the foreign exchange market.
The peso has struggled to recover since hitting record lows last year, despite brief periods of stabilization.
What It Means for Filipinos
A weaker peso can make imports more expensive, affecting fuel prices, food, and other consumer goods. On the other hand, it may provide some relief to overseas Filipino workers and exporters, as dollar earnings convert to more pesos — a key factor for many households and businesses.
For now, analysts expect the peso to remain volatile as markets monitor inflation trends, central bank policy signals, and global financial developments.
As of January 7, 2026, the peso was trading at around ₱59.28 to ₱59.37 per US dollar, levels that are among the weakest on record. At this rate, one peso is worth roughly $0.0169, underscoring the currency’s ongoing softness against the greenback.
Market data show the peso recently touched a fresh record low near ₱59.37, driven by a strong US dollar and investor caution toward emerging-market currencies. Traders have also been weighing expectations of possible policy easing later this year, which could further pressure the peso.
The Bangko Sentral ng Pilipinas (BSP), however, has signaled that it is not rushing into interest rate cuts, after recent inflation figures came in higher than expected. Policymakers have indicated a cautious stance, balancing economic growth concerns with the need to avoid further weakening of the currency.
What’s Driving the Peso’s Weakness?
Several factors continue to shape the peso’s performance:
A strong US dollar and global risk aversion have pushed investors toward safe-haven assets, weighing on emerging-market currencies like the peso.
Economic growth concerns and shifting capital flows have added to volatility in the foreign exchange market.
The peso has struggled to recover since hitting record lows last year, despite brief periods of stabilization.
What It Means for Filipinos
A weaker peso can make imports more expensive, affecting fuel prices, food, and other consumer goods. On the other hand, it may provide some relief to overseas Filipino workers and exporters, as dollar earnings convert to more pesos — a key factor for many households and businesses.
For now, analysts expect the peso to remain volatile as markets monitor inflation trends, central bank policy signals, and global financial developments.
Jan 7, 2026
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