Philippine peso breaches P63:$1, hits 27th record low for year

The Philippine peso weakened against the dollar for the third trading day on Thursday, breaching the P63:$1 level to hit a fresh record low, amid what an economist described as a “series of unfortunate events.”

The local currency shed 19 centavos to close Thursday at P63.06:$1 from Wednesday’s finish of P62.87:$1. This is the peso's 27th record low so far this year, surpassing the P62.9:$1 close on October 8, 2026.

READ: How Filipinos are affected by the peso-dollar exchange rate

Reyes Tacandong & Co. senior adviser Jonathan Ravelas attributed Thursday’s depreciation to the higher probability of a rate hike in the United States, with the Federal Open Market Committee (FOMC) scheduled to meet next week to discuss policy rates.

“A series of unfortunate events… higher probability of a rate hike in the US after a higher inflation print and geopolitical risks remain (and) continue to put the dollar in front position as well as the declining GIR (gross international reserves),” he said in a mobile message.

This comes as US inflation came in at 3.7% in September, with core inflation up 2.6%, both higher than market expectations, and increasing the likelihood of a Federal Reserve rate hike during the October 27-28 meeting.

Philippine dollar reserves, or the GIR — a measure of the country’s ability to settle import payments and service debt — fell to $99.996 billion in September, the lowest in three years, since September 2023’s $98.116 billion. —NB, GMA News