The Philippine peso weakened further on Tuesday, sliding to its lowest level on record as markets braced for a possible rate cut during the Bangko Sentral ng Pilipinas’ (BSP) Dec. 11 policy meeting.
The currency dropped by 28.5 centavos from Monday’s close, ending the day at ₱59.22 to $1—surpassing the previous all-time low of ₱59.17 set on Nov. 12.
The local currency depreciated by 10.2 centavos, closing at ₱59.022:$1, slightly weaker than Wednesday’s ₱58.92:$1 finish. In a GMA News report, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the downturn followed signals from authorities that this year’s GDP growth may not meet the official 5.5% to 6.5% goal.
Earlier this week, DepDev Secretary Arsenio Balisacan admitted that hitting the already lowered growth range is “very unlikely.” If expansion ends below 5.5%, 2025 would become the third straight year of missing economic targets, following underperformances in both 2023 and 2024.
GDP grew by an average of 5% in the first nine months of the year, dragged down by a 4.0% third-quarter result—the slowest pace in four years. BSP Governor Eli Remolona Jr. also forecast that full-year growth would settle between 4% and 5%, with recovery expected to begin only by mid-2026 due to weakened investor confidence linked to the flood-control corruption scandal.
Ricafort noted that a potential support for the peso could come from the seasonal surge in OFW remittances and conversions leading up to the December holidays.
