The Philippine peso (PHP) has experienced notable depreciation recently, reaching a record low of 59.262 per US dollar in October 2025. This decline is largely attributed to growing concerns over a potential economic slowdown, fueled by controversies surrounding infrastructure spending and expectations of additional monetary policy easing. Analysts suggest that the ongoing infrastructure issues have dampened investor confidence, exacerbating the peso's fall.
The Bangko Sentral ng Pilipinas (BSP) has indicated a shift towards a market-determined exchange rate policy, primarily intervening to manage inflation rather than to curb routine currency fluctuations. With Philippine inflation remaining low at 1.7% as of November 2025, below the BSP's target, some economists foresee the possibility of interest rate cuts aimed at bolstering economic growth.
Recent data indicates that the PHP has been trading consistently lower against major currencies. The PHP to USD rate of 0.016958 is approximately 1.1% below its 3-month average of 0.017149, with a stable trading range of 0.016915 to 0.017642. Similarly, the PHP to EUR rate at 0.014564 has followed suit, underperforming against its 3-month average of 0.014729, ranging from 0.014520 to 0.014998. The currency also shows a consistent downward trend against the British pound (GBP), currently at 0.012724, which is also 1.1% below its 3-month average.
In contrast, the PHP to JPY has seen a slight uptick, trading at 2.6326, which is just 0.9% above its 3-month average. This deviation highlights the peso's relative instability amid broader market concerns.
Market experts warn businesses and individuals engaging in international transactions to remain vigilant, as the ongoing economic and political uncertainties could lead to further fluctuations in the peso's value. Careful consideration of timing and exchange rate trends may offer opportunities to mitigate costs in cross-border dealings.
