Peso slides to fresh record low of PHP 59.355 per dollar

The peso fell to a fresh record low against the dollar on Wednesday amid dovish signals from the Philippine central bank.

The local unit closed at PHP 59.355 versus the greenback, declining by 14.5 centavos from its PHP 59.21 finish on Tuesday, data from the Bankers Association of the Philippines showed.

It surpassed its previous record low of PHP 59.22 logged on Dec. 9, 2025.

The peso opened Wednesday’s trading session weaker at PHP 59.24 versus the dollar. Its intraday best was at PHP 59.20, while its weakest showing was at PHP 59.38 against the greenback.

Dollars traded declined to USD 1.317 billion on Wednesday from USD 1.386 billion on Tuesday.

Fresh signals from the Bangko Sentral ng Pilipinas (BSP) of a potential rate cut next month weighed on the local unit, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“The peso weakened anew after the BSP signaled a potential rate cut in February which could further narrow domestic and US rate differentials,” another trader likewise said in an e-mail.

BSP Governor Eli M. Remolona, Jr. said on Tuesday that a rate cut at its Feb. 19 meeting remains on the table amid “reasonably low” December inflation and below-target economic growth last year.

“I can say that we’re very close to where we want to be in terms of policy… There’s a chance that we may cut some more, and there’s also a chance that we may not move at all. But there’s not a lot of probability that we will raise in 2026,” he said.

Mr. Remolona also said the BSP would only intervene in the foreign exchange market if the peso’s depreciation is “sharp enough” to impact inflation.

“The peso is under pressure following the dovish Bangko Sentral ng Pilipinas comments and the relatively relaxed stance on its recent depreciation trend,” Wee Khoon Chong, a senior APAC market strategist at BNY, was quoted as saying in a Bloomberg News report.

Bloomberg reported that Mr. Remolona declined to comment on Wednesday when asked whether the BSP is intervening in the currency market to support the peso and if he sees it breaching PHP 60 against the dollar.

Lower growth prospects, weakening current-account balance and deterioration of investor sentiment are all weighing on the peso in the short term, Mr. Chong said.

The local unit may have also weakened due to a knee-jerk reaction by investors following the US attack on Venezuela, Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas said in a Viber message.

“The dollar-peso closed higher as market sentiment continued to sour amid geopolitical concerns following the US attack on Venezuela,” a trader likewise said by telephone.

For Thursday, the first trader said the market could remain cautious as it awaits US labor data and hopes for intervention by the central bank. “Upside may remain sluggish,” the trader said.

The first trader sees the peso moving between PHP 59.10 and PHP 59.50 per dollar on Thursday, while both the second trader and Mr. Ricafort expect it to range from PHP 59.20 to PHP 59.45.

Mr. Ravelas sees the local unit moving between PHP 59 and 59.30 per dollar. — Aaron Michael C. Sy, Reporter with Bloomberg News