Philippine Peso Holds Near Record Low Despite Rate Hike
The Philippine peso hovered around 63.3 per dollar, remaining close to its record low of 63.5, despite the Bangko Sentral ng Pilipinas raising interest rates for the fourth consecutive time. The central bank raised its benchmark interest rate by 50 basis points to 5.50% at its October 2026 meeting, larger than market expected, citing heightened inflation risks. The rate hike, however, provided limited relief for the peso as elevated oil prices continued to weigh on the currency, with Brent crude rising above $110 per barrel amid renewed tensions around the Strait of Hormuz. The country relies heavily on imports for fuel and food supplies. The peso also remained under pressure from the country’s deteriorating external position and slower investment inflows.
The Philippine peso hovered around 63.3 per dollar, remaining close to its record low of 63.5, despite the Bangko Sentral ng Pilipinas raising interest rates for the fourth consecutive time. The central bank raised its benchmark interest rate by 50 basis points to 5.50% at its October 2026 meeting, larger than market expected, citing heightened inflation risks. The rate hike, however, provided limited relief for the peso as elevated oil prices continued to weigh on the currency, with Brent crude rising above $110 per barrel amid renewed tensions around the Strait of Hormuz. The country relies heavily on imports for fuel and food supplies.
The peso also remained under pressure from the country’s deteriorating external position and slower investment inflows.