FILE

The Philippine peso weakened past the ₱60-per-dollar level in March 2026, marking one of the lowest points in its trading history. Analysts say the decline reflects global market volatility, geopolitical tensions, and a stronger U.S. dollar attracting investors to safer assets.

Economists cite several factors behind the peso’s retreat:

• Geopolitical tensions in the Middle East, which have pushed up oil prices and increased uncertainty in global markets.
• Rising global oil costs, which raise import bills for the Philippines, a country heavily reliant on imported fuel.
• Investor flight to safety, with funds shifting from emerging-market currencies, including the peso, to the U.S. dollar.

The peso’s weakness has tangible effects for everyday Filipinos: higher prices for imported goods such as fuel, electronics, and some food items; inflationary pressures; and increased costs for government and corporate debt denominated in dollars. While remittances from abroad may buy more pesos, domestic inflation can offset this benefit.

The Bangko Sentral ng Pilipinas (BSP) monitors currency volatility and may intervene to smooth sudden swings, though it does not defend a specific exchange rate. Malacañang has also expressed concern over deep peso depreciation, noting potential impacts on foreign debt and import costs.

Economists say the peso could remain near the ₱60 mark for weeks if global uncertainties persist, and the currency’s path will largely depend on geopolitical developments, oil price movements, and investor sentiment in the coming months. For ordinary Filipinos, the peso’s slide highlights how international events can directly affect local prices and household budgets.