P63 to $1: Why the Peso Just Hit a Record Low

Key Facts

The peso hit P63.15 during trading on October 15, an all-time low.

It closed at P63.06, down 19 centavos from the day before.

It has dropped 6.49% since the end of 2025, when it closed at P58.79.

The Palace blames the Middle East conflict, El Niño and political noise.

A possible BSP rate hike on October 22 and Christmas remittances could offer support.

Okay, this one's a big number.

On Thursday, October 15, the Philippine peso slipped past P63 to the US dollar for the first time ever. It hit a low of P63.15 during trading and closed at P63.06, 19 centavos weaker than the day before.

The peso's 2026 so far

Dec. 29, 2025: closed at P58.79
Since March: stuck above P60 after the Middle East war began
Oct. 15, 2026: P63.06 close, an all-time low
Total drop this year: P4.08, or 6.49%

So, why is this happening?

Malacañang points to three things: the Middle East conflict, the expected effects of El Niño, and political noise. Palace Press Officer Claire Castro said the Middle East crisis "is truly affecting the country's economy."

Union Bank chief economist Ruben Carlo Asuncion added another reason: higher US inflation and expectations that the US Federal Reserve will keep interest rates high for longer. That makes investors less interested in emerging-market currencies like the peso.

Why your wallet might feel it

PIDS senior research fellow John Paolo Rivera expects the peso to stay weak for now, with high oil prices and steady demand for dollars. His worries: pricier imports, higher inflation and less buying power for households.

The good news? He also said breaking P63 doesn't automatically mean the peso will keep sliding.