Peso closes at new record low of P61.64:$1

The Philippine peso closed at a new all-time low on Thursday, dragged by political uncertainties, which could cause further depreciation should risk sentiment continue to decline.

The local currency depreciated by 26 centavos and closed at P61.64:$1 from Wednesday’s finish of P61.38:$1. This is the worst showing of the peso, surpassing the previous record of P61.567:$1 on April 29, 2026.

Thursday’s depreciation came amid the political uncertainties in the country, following the commotion late Wednesday evening after gunshots rang out at the Senate premises, prompting a lockdown after the Articles of Impeachment against Vice President Sara Duterte were delivered to the upper chamber past 7:30 p.m.

“The peso is no longer reacting to just a strong dollar and high US rates. Today’s move suggests markets are also pricing in a higher political and uncertainty premium, especially as the peso underperformed regional peers,” a trader said in a mobile message.

Moving forward, the trader said the peso could test the P62:$1 level should the risk sentiment deteriorate further, but noted that the Bangko Sentral ng Pilipinas (BSP) still has enough reserves to prevent “disorderly swings.”

Latest data from the BSP show that the gross international reserves (GIR) – a measure of the ability to settle import payments and service foreign debt – stood at $104.127 billion in April, the lowest since January 2025’s $103.271 billion.

BSP governor Eli Remolona Jr., for his part, has maintained that the central bank does not target a specific level but instead moves when big swings occur. — JMA, GMA News