Philippine peso drops past ₱64 to dollar in record closing low
The currency weakened despite a 50-basis-point rate increase on October 22 that took the BSP’s key policy rate to 5.50%.
Data from the Bankers Association of the Philippines showed the peso finished October 27 at a record ₱64.17 against the US dollar. It was the currency’s first breach of ₱64 per dollar, with a loss of 22 centavos compared with the previous session.
The October 26 closing rate was ₱63.95. Trading on October 27 started at that same level, before the peso slipped as far as ₱64.20 during the session.
The decline followed the Bangko Sentral ng Pilipinas’ October 22 decision to raise its key policy rate by 50 basis points to 5.50%. Governor Eli Remolona Jr. said at a briefing that day that rate increases were not designed to defend the currency.
Remolona said the BSP would act when depreciation became inflationary, seeking to soften excessive fluctuations rather than halt the currency’s decline. He withheld the threshold for intervention to avoid giving speculators an advantage.
In an October 27 interview with DZBB, former BSP deputy governor Diwa Guigundo linked the peso’s weakness to subdued capital flows, a deficit in the balance of payments and limited foreign investment. He also said corruption allegations and political troubles had created uncertainty for investors.
