Peso Suffers Record Decline Amid Energy Price Shock

The Philippine peso has been struggling against its emerging-market peers in Asia, and experts predict it will continue to decline. In August, the peso was down 6.2 percent for the year, making it the worst-performing currency in the region.

The peso's weakness is attributed to the Philippines' heavy reliance on service industries, which has led to a widening trade deficit of nearly 30 percent this year. Inflation has also surged to over twice the official target, and foreign reserves have dwindled as a result.

Strategists at JPMorgan Chase and Bank of America predict that the peso will extend its decline to as low as 65 per dollar by mid-2027. The current record-low is 62.77, set on September 7.