BUSINESS
Advocates Philippines
Peso Weakens To P60.68 Level As Dollar Strength Keeps Pressure On Currency
FILE
The Philippine peso has weakened further, slipping to around ₱60.68 against the US dollar, according to the latest reference rate from the Bangko Sentral ng Pilipinas, as global and domestic pressures continue to weigh on the currency.
The move places the peso near the ₱60–₱61 range, reflecting continued volatility in foreign exchange markets compared with earlier levels this year when it was still trading below ₱58.
Analysts attribute the peso’s weakness mainly to sustained US dollar strength, driven by higher interest rates in the United States. Elevated US yields tend to attract global capital into dollar-denominated assets, reducing demand for emerging market currencies like the peso.
Import demand is also adding pressure. As the Philippines continues to rely heavily on imported fuel and other essential goods, rising global prices increase the need for US dollars, which in turn affects the local currency.
The BSP has maintained that it closely monitors foreign exchange movements and stands ready to address excessive volatility if needed. Its policy approach has focused on balancing inflation control with exchange rate stability.
On the other hand, overseas Filipino worker remittances continue to provide a stabilizing effect. These dollar inflows help support foreign exchange supply and cushion sharper declines in the peso.
Still, the weaker currency has broader economic implications. It increases the cost of imported goods such as fuel and food, which can contribute to inflationary pressure and affect household budgets.
With global uncertainty still elevated—particularly around US monetary policy and geopolitical developments—analysts expect continued volatility in the peso. The ₱60 level is now widely seen by markets as a key psychological range for the currency.
The move places the peso near the ₱60–₱61 range, reflecting continued volatility in foreign exchange markets compared with earlier levels this year when it was still trading below ₱58.
Analysts attribute the peso’s weakness mainly to sustained US dollar strength, driven by higher interest rates in the United States. Elevated US yields tend to attract global capital into dollar-denominated assets, reducing demand for emerging market currencies like the peso.
Import demand is also adding pressure. As the Philippines continues to rely heavily on imported fuel and other essential goods, rising global prices increase the need for US dollars, which in turn affects the local currency.
The BSP has maintained that it closely monitors foreign exchange movements and stands ready to address excessive volatility if needed. Its policy approach has focused on balancing inflation control with exchange rate stability.
On the other hand, overseas Filipino worker remittances continue to provide a stabilizing effect. These dollar inflows help support foreign exchange supply and cushion sharper declines in the peso.
Still, the weaker currency has broader economic implications. It increases the cost of imported goods such as fuel and food, which can contribute to inflationary pressure and affect household budgets.
With global uncertainty still elevated—particularly around US monetary policy and geopolitical developments—analysts expect continued volatility in the peso. The ₱60 level is now widely seen by markets as a key psychological range for the currency.
Apr 28, 2026
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