Philippine peso sinks to record low, nears 64 per dollar
The currency fell for a fifth straight day despite a sharp rate hike, as costly oil and tensions over Iran strengthened the dollar.
Symbolic image · Photo: Marek Ślusarczyk (Tupungato) Photo portfolio / Wikimedia Commons, CC BY 3.0 (cropped and resized)
The Philippine peso fell 33.5 centavos on Monday to close at a record low of 63.95 per dollar, Bankers Association of the Philippines data showed, the Philippine Daily Inquirer reported. It was the fifth straight trading day at an all-time low, after the previous low of 63.615 was set on Friday.
The central bank raised its policy rate by 50 basis points to 5.5% last week, but the peso kept weakening. Governor Eli Remolona said the hike was not meant to defend the currency. The bank expects average inflation of 6.1% in 2026, against a 3% target.
China Banking Corp. chief economist Domini Velasquez linked the pressure to higher oil prices and President Donald Trump's remarks on possible renewed military action against Iran, which lifted the dollar. She said the peso could soon breach 64, while analyst Jonathan Ravelas warned it could weaken to 65.