The Philippine peso has extended its downward slide against the US dollar, hitting record-low levels for two consecutive days.
The local currency closed at 62.265php against the US dollar on Friday, August 28, marking its all-time low in history. This came a day after the peso already posted its second-lowest closing value at 61.888php on Thursday, August 27.
According to a report by GMA News, the peso’s recent weakness was partly driven by the continued increase in global oil prices, as well as the Bangko Sentral ng Pilipinas’ (BSP) upward revision of its inflation forecasts for the next two years.
The BSP forecasted inflation to reach 5.4 percent in 2027, significantly higher than its previous forecast of 4.5 percent. For 2028, the central bank projects inflation at 3.3 percent, up 0.2 percent from its earlier forecast of 3.1 percent.
Peso starts the week weaker, before the record plunge
The peso had already started the trading week on a weaker note.
On Monday, August 24, the local currency closed at 61.806php, down by 13.6 centavos from its previous close of 61.67php on Thursday, August 20.
The peso managed to recover slightly the following day, strengthening by 0.4 centavos to 61.76php on Tuesday, August 25.
Its recovery continued on Wednesday, August 26, when the peso closed at 61.687php against the US dollar.
However, the brief recovery was short-lived.
The peso weakened sharply on Thursday, August 27, falling to 61.888php and surpassing its previous record-low territory. The downward trend intensified on Friday, August 28, when it plunged further to 62.265php, setting a new all-time low.
The latest depreciation highlights the continued pressure facing the Philippine currency amid elevated oil prices and concerns surrounding the country’s inflation outlook.
