Philippine peso falls to record low 62.265 per dollar on oil prices

August 31, 2026 at 06:27 PM2 min

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The Philippine peso closed at a record low of 62.265 per U.S. dollar on Friday, weakening 37.7 centavos as oil prices rose and the dollar strengthened. The decline came despite the central bank raising its benchmark rate by 25 basis points to 5 percent. The peso has lost nearly 8 percent since the U.S.-Iran war began on February 28.

Key Facts

The peso closed at 62.265 per U.S. dollar on Friday, surpassing the previous record low of 61.888 set the day before.
The Bangko Sentral ng Pilipinas raised its benchmark interest rate by 25 basis points to 5 percent, bringing the total increase in the current anti-inflation campaign to 75 basis points.
Philippine policymakers expect inflation to average 6.1 percent this year and 5.4 percent in 2027, up from 1.7 percent in 2025 and 3.2 percent in 2024.
The Indonesian rupiah fell to a record low of 18,190 against the dollar in early June, lower than during the 1997-1998 Asian financial crisis.
The Thai baht weakened to 32.96 per U.S. dollar at the close of its last session, down 4.6 percent since the start of 2026.

Record Low and Market Pressure

The Philippine peso fell to a record low on Friday, weakening 37.7 centavos to close at 62.265 per U.S. dollar, according to data from the Bankers Association of the Philippines cited by Inquirer.net. The new record surpassed the previous low of 61.888 set the day prior and capped three straight weeks of losses for the currency. The peso has lost nearly 8 percent since the U.S.-Iran war began on February 28, driven by the Philippines' heavy reliance on oil imports and rising inflation. Citi analysts told Reuters that the currency outlook remained negative due to significant external pressures, including a widening current-account deficit and elevated energy prices.

Central Bank Response

The Bangko Sentral ng Pilipinas raised its benchmark interest rate by 25 basis points to 5 percent, a move Governor Eli Remolona Jr. described as preemptive against emerging inflation risks. The increase brought the total rise in the current anti-inflation campaign to 75 basis points. Philippine policymakers now expect inflation to average 6.1 percent this year and 5.4 percent in 2027, up from a decade-long low of 1.7 percent in 2025 and 3.2 percent in 2024.

Regional Currency Weakness

The Indonesian rupiah fell by around 8 percent in the first six months of 2026 and sank to a record low of 18,190 against the dollar in early June, lower than during the 1997-1998 Asian financial crisis. The rupiah has been under pressure since President Prabowo Subianto took office in October 2024, with concerns compounded by the economic reverberations of the Iran war. The Thai baht also weakened, falling to 32.96 per U.S. dollar at the close of its last session, down 4.6 percent since the start of 2026.