28.10.202507:47:17UTC+00Philippine Peso Slides to Record Low

In late October, the Philippine peso hit a historic low of PHP 59 against the US dollar, maintaining its downward trend following indications from the central bank that it would permit further devaluation. The Bangko Sentral ng Pilipinas (BSP) emphasized that the peso is influenced by market dynamics, intervening chiefly to stabilize inflation-driven fluctuations rather than limit daily volatility. This stance indicates that the central bank is more amenable to a weaker peso, in contrast to other Asian nations that have stepped in to bolster their currencies. Additional pressure on the peso emerged after the BSP's unexpected interest rate reduction earlier in October, along with a hint that borrowing costs might be lowered by another 25 basis points in December, with the possibility of further reductions in 2026. Furthermore, accusations of the extensive misuse of significant funds earmarked for flood-control projects have cast a shadow over the Philippines' economic growth prospects, eroding investor confidence.