The Philippine peso (PHP) has been at the forefront of economic discussions as it reached a record low against the US dollar, closing at P59.22 on December 9, 2025. This decline has sparked interest among analysts and businesses alike, with expectations of further monetary easing influencing the currency's value both locally and in the United States.
On December 11, the Bangko Sentral ng Pilipinas (BSP) executed a 25-basis-point rate cut as part of its monetary policy shift. BSP Governor Eli Remolona noted that future rate changes would hinge on incoming economic data. Analysts suggest that this rate cut, while aimed at stimulating growth, has added to the weightbear on the peso as investors react to its implications on economic performance.
Compounding these challenges is a downward revision of the Philippines' economic growth projections by the ASEAN+3 Macroeconomic Research Office (AMRO). The agency cited a widening graft scandal as a key factor undermining public confidence and economic performance. Such factors are critical for small businesses and international transactions, as volatility in currency can substantially affect costs.
Despite these recent setbacks, the Department of Budget and Management (DBM) held a more optimistic outlook regarding the peso’s stability. The department expects the exchange rate to range between P56 to P58 per USD from 2025 until 2028, due in part to low domestic inflation and more favorable global financial conditions. As the peso reflects stability, analysts believe that modest strengthening could occur in the first half of 2026, contingent on effective governance reforms and improvements in investor confidence.
Examining recent price data highlights that the PHP to USD is presently trading at 14-day lows near 0.016992. This value is just below its 3-month average and has remained within a stable 2.5% range, fluctuating from 0.016845 to 0.017271. Traders and exporters keeping an eye on this rate should be aware that the dollar's strength during this period may put additional pressure on the peso.
In relation to the euro (EUR), the PHP is currently at lows of approximately 0.014433, which is around 1.4% under the 3-month average of 0.014638. A relatively stable trading range of 3.1% has been observed, moving from 0.014410 to 0.014860. For businesses involved in imports from Europe or travelers planning trips, these rates are indicative of the current costs and potential for exchange.
The situation looks less favorable against the pound sterling (GBP), where the PHP is marked down at 90-day lows around 0.012578, approximately 1.8% lower than its 3-month average of 0.01281. This demonstrates a precipitous shift for importers and exporters dealing in GBP. The currency has shown a stable yet narrow trading range of 4.1%, from 0.012578 to 0.013095.
Interestingly, the PHP has had a slight uptick against the Japanese yen (JPY). Currently registered at lows of 2.6514, the PHP is about 1.0% above the 3-month average of 2.6256, trading within a range of 6.6% from 2.5253 to 2.6928. This could present additional opportunities for those making transactions with Japan or considering investments in Japanese markets.
Overall, the currency landscape for the Philippine peso underscores significant uncertainty stemming from both domestic issues and global economic conditions. Stakeholders, especially small business owners and expatriates engaging in remittances or trade, should remain vigilant and consider hedging strategies. With the prospects of modest recovery hinging on governance reforms, the coming months will be pivotal for the peso as businesses and individuals navigate these fluctuations.
