FX.co ★ Philippine Peso Holds Near Record Low Despite Rate Hike

The Philippine peso traded around 63.3 per dollar, hovering near its record low of 63.5, even after the Bangko Sentral ng Pilipinas raised interest rates for the fourth consecutive time. At its October 2026 meeting, the central bank lifted its benchmark rate by 50 basis points to 5.50%—a larger increase than markets had anticipated—citing heightened inflation risks. However, the hike offered only limited support to the peso, as elevated oil prices continued to drag on the currency. Brent crude climbed above $110 per barrel amid renewed tensions in the Strait of Hormuz. The Philippines remains heavily dependent on fuel and food imports, amplifying the negative impact of higher global prices. Additionally, the peso stayed under pressure due to the country’s weakening external position and a slowdown in investment inflows.