The Philippine peso slid to a fresh all-time low of ₱61.30 per US dollar on April 28, 2026, breaching the ₱61 level for the first time and extending its sharp depreciation trend this year.

Data from the Bankers Association of the Philippines show the peso opened around ₱60.80 before weakening throughout the session, hitting an intraday low near ₱61.08 and closing at ₱61.30. The move surpassed the previous record low of ₱60.748 set on March 31, with the currency losing roughly 59 centavos in a single trading day as volumes rose to about $1.7 billion.

The decline reflects a mix of global and domestic pressures, led by heightened geopolitical tensions in the Middle East that have pushed investors toward the US dollar as a safe-haven asset. Ongoing risks to oil supply—particularly around the Strait of Hormuz—have also driven up global crude prices, amplifying pressure on economies like the Philippines that rely heavily on imported energy.

At home, inflation concerns continue to weigh on the currency. The Bangko Sentral ng Pilipinas recently raised policy rates by 25 basis points to 4.5% and now sees average inflation reaching around 6.3% in 2026. Higher import costs for fuel and food are feeding into broader price pressures, limiting the peso’s ability to stabilize despite tighter monetary policy.

Economists note that the currency’s rapid move, from below ₱58 earlier in the year to beyond ₱61, highlights how quickly external shocks can reshape market sentiment. Analysts, including those from major local banks, point to stalled geopolitical negotiations and sustained oil volatility as key drivers behind the continued weakness.

The impact is uneven across the economy. A weaker peso raises the cost of imports, which could translate to higher transport fares, electricity rates, and food prices for consumers. At the same time, it benefits exporters, business process outsourcing firms, and overseas Filipino workers, whose dollar earnings convert into more pesos.

For policymakers, the currency’s slide reinforces the need to balance short-term stabilization with longer-term structural measures, such as energy diversification and strengthening domestic production to reduce exposure to global shocks. Market watchers say the peso’s trajectory will largely depend on how geopolitical tensions evolve: a sustained easing could allow partial recovery, while prolonged instability may push the currency to test new lows.

The move marks another milestone in the peso’s volatility cycle, and a clear signal of how global forces continue to shape the Philippine economy.

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