# Philippine Peso Drops to Record Low Near 63 per Dollar on Weak Growth Outlook

- URL: https://stocks.freetheai.org/news/philippine-peso-drops-to-record-low-near-63-per-dollar-on-weak-growth-outlook-deb3ef
- Published: 2026-10-15T03:24:45Z
- Category: forex; sentiment: bullish; impact: high
- Symbols: [FX_IDC:USDPHP](https://stocks.freetheai.org/symbols/FX_IDC-USDPHP)
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The Philippine peso fell to a historic low against the U.S. dollar in mid-October, trading near 63.02 PHP per greenback following a 0.46% decline in a single session. The weakening currency comes as deteriorating domestic economic expectations trigger broader selling pressure.

A reduced economic growth forecast from the International Monetary Fund underscores the pressure on the national economy. Economic expansion is projected to slow to 3.4% this year from 4.4% in 2025, marking one of the slowest growth rates in Southeast Asia. Elevated inflation and weak investment have curbed output, while an energy crunch sparked by conflict in the Middle East and ongoing complications from a flood control scandal have added further drag. Additionally, unemployment is expected to ease to 5.2% by 2027, higher than earlier projections of 4.6%.

Market participants are turning their focus to potential policy reactions from monetary authorities. As currency depreciation persists, economists at Rizal Commercial Banking Corp. suggest that central bank interest rate increases are growing increasingly likely to help stabilize the exchange rate.

## Key points

- The Philippine peso hit a record low of 63.02 per U.S. dollar, dropping 0.46% in a day.
- Gross domestic product growth is projected to slow to 3.4% this year, down from 4.4% in 2025.
- Weak investment, elevated inflation, and an energy crisis have weighed on economic activity.
- The long-term unemployment rate estimate was raised to 5.2% by 2027 from 4.6%.
- Rising exchange rate pressure has increased the likelihood of central bank interest rate hikes.

## Questions and answers

### Why is the Philippine peso falling to a record low?

The Philippine peso is dropping due to a slowing economic growth outlook, elevated inflation, weak investment, and an energy crunch stemming from Middle East conflict, along with fallout from a flood control scandal.

### What is the projected GDP growth for the Philippines?

Gross domestic product growth is expected to slow to 3.4% this year, down from 4.4% in 2025, placing the country among the slower-growing economies in Southeast Asia.

### Will the Philippine central bank raise interest rates?

Additional interest rate increases are becoming more likely as central bank intervention is called for to help stabilize the depreciating currency.