Philippine Peso Hits Record Low in September — Down to 62.86 Pesos per Dollar, More Pesos for Your Won

📌 In September, the Philippine peso repeatedly broke record lows, hitting an all-time closing low of 62.86 pesos per dollar on September 14.
This is because rising international oil prices due to the Middle East conflict have increased the demand for US dollars in the oil-importing Philippines. Conversely, the South Korean won has been strong, creating a favorable trend for expats and travelers exchanging Korean won for pesos.

■ What Has Changed (Peso per USD, Bankers Association of the Philippines BAP closing price)
· September 4: 62.59 → September 9: 62.625 → September 11: 62.68 → September 14: 62.86 (All-time closing low)
· Fell as low as 62.925 intraday on September 15, then closed at 62.565 on September 30
· Down about 6.15% compared to the end of last year (58.79 on December 29). Singapore's DBS Bank analyzed that "among Asian currencies, the peso has dropped the most (-7.8%) since the end of February when the Middle East conflict began."

■ Why Is It Falling
· Brent crude oil hovers above $100 a barrel amid the prolonged US-Iran conflict (over $106 on September 30)
· As an oil-importing country, rising oil prices increase import payments (in dollars) for the Philippines
· The US dollar itself remains strong due to expectations of US interest rate hikes. Remittances from overseas workers provide some support, but not enough to cover the trade deficit
· The Bangko Sentral ng Pilipinas (BSP) maintains the position that it can curb sharp fluctuations using foreign exchange reserves and other measures

■ Impact — The Opposite for the Korean Won
· In the same DBS analysis, the Korean won rose 6% against the dollar since the Middle East conflict, making it the strongest Asian currency
· Calculated using the Seoul foreign exchange market won/dollar closing rate of 1,352.8 won on September 30 and the peso closing rate on the same day (62.565), 1 peso ≈ 21.6 won
· Expats receiving living or tuition expenses from South Korea and spending in pesos are getting more pesos for the same amount of Korean won. On the flip side, Philippine prices (especially fuel and imported goods) face upward pressure.

■ Tips for Expats and Travelers
· Exchange rates fluctuate daily. When exchanging large amounts of money, splitting it up rather than doing it all at once helps reduce volatility risk.
· DBS forecasts that the peso may recover slightly to 61.50 by the end of the year before weakening again next year, but this is just a projection and not a guarantee.

■ Sources
Manila Times (9/4, 9/11, 9/14), Philstar (9/9), Daily Tribune (9/8), Manila Bulletin (9/4), BusinessWorld (9/9, 9/30, 10/1), MoneyToday, NewsPim (9/30)

■ Photo
· Peso and US dollar banknotes (Manila Times)