Philippine peso sinks past 62 per dollar to new all-time low

The Philippine peso depreciated past 62 per dollar on Friday, hitting a new all-time low as concerns over the domestic inflation outlook kept pressure on the currency.

The move came despite the Bangko Sentral ng Pilipinas raising its policy rate by 25 bps to 5% in a third straight hike, described as a preemptive move.

The BSP raised its 2027 inflation forecast to 5.4% from 4.5%, citing risks from severe El Niño conditions and higher minimum wages, while lowering its 2026 forecast to 6.1% amid easing oil prices.

Still, elevated oil prices continue to pose a risk to the peso, as the Philippines imports almost all of its oil needs, potentially widening the current-account deficit and adding to domestic inflation pressures.

Governor Eli Remolona said the central bank would focus on smoothing sharp currency movements rather than defending a specific exchange-rate level.

The peso has now lost more than 5% against the dollar this year, leaving it among Asia’s weakest performers.