THE PESO rebounded against the US dollar on Wednesday, ending a seven-day streak of record low closes, after President Ferdinand R. Marcos, Jr. vowed to defend the local currency.

The local unit on Wednesday recovered by 14.5 centavos to close at P64.025 versus the greenback from its all-time low finish of P64.17 on Tuesday, Bankers Association of the Philippines data showed. 

“We will continue to do all that we can to make sure that the value of the peso does not continue to go down, especially relative to the dollar,” Mr. Marcos told reporters on Wednesday.

“People can take solace in the fact that our policy towards the peso is to continue to defend the peso as hard as we possibly can. We have all the tools to defend the peso. We have all the means to defend the peso,” he said.

His remarks came a day after the peso breached the P64-per-dollar level for the first time and his meeting with Bangko Sentral ng Pilipinas (BSP) officials and economic managers.

Year to date, the peso has fallen by P5.235 or 8.18% against the US dollar from its P58.79 finish on Dec. 29, 2025.

“Do not take it with alarm. Don’t panic,” Mr. Marcos said of the peso’s slide.

The President said the government has adequate foreign exchange reserves to help stabilize the currency and attributed the peso’s decline to a stronger dollar and higher oil prices.

“The dollar is also becoming very strong. But nevertheless, we have the means. Our foreign exchange reserves are healthy. And that is what we are getting to defend the peso,” he said.

BSP data showed gross international reserves (GIR) declined 8.31% year on year to $99.997 billion as of September. This was the lowest GIR level in three years or since September 2023.

PESO REBOUND
The local unit opened Wednesday’s session slightly stronger at P64.08 against the dollar, while its intraday best was at P63.94

The peso’s worst showing was at P64.18, below its weakest level on record of P64.20 logged on Tuesday.

Dollars traded went down to $1.662 billion from $1.726 billion.

“The dollar-peso pulled back maybe due to profit taking and following remarks from President Marcos showing their readiness to defend the peso,” a trader said by telephone.

The peso was also supported by lower global crude oil prices on Wednesday as Brent crude went down to $115-a-barrel levels after peaking at $117 a barrel last week, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message, adding that this was compounded by lower US Treasury yields.

Mr. Ricafort added that the seasonal increase in remittances may have also helped the peso recover.

Meanwhile, Jose L. Cuisia, Jr., a former central bank governor, said the P65-per-dollar level is “easy to break” ahead of the US Federal Reserve’s meeting and amid structural governance issues that are weakening foreign investments.

“The Fed is going to make a decision this week. If they increase, there’s going to be greater pressure on the peso. And even P65, very easy to break. We’re already at P64,” he said.

Markets are awaiting the Fed’s policy decision later on Wednesday. The Federal Open Market Committee is widely expected to keep its policy rate unchanged.

Mr. Cuisia noted that the peso’s seasonal support from remittances may not be as pronounced at this time due to the Middle East conflict.

For Thursday, the trader said a less hawkish Fed may encourage sellers to test immediate support at P63.80, while signals of further rate hikes may push the dollar to test resistance at P64.30. Mr. Ricafort sees it ranging from P63.90 to P64.10.

IMMEDIATE ACTION NEEDED
Meanwhile, the Financial Executives Institute of the Philippines (FINEX) on Wednesday urged the government to undertake immediate action to protect the economy amid red-hot inflation.

The business group backed the BSP’s move to hike interest rates in its fight against inflation but noted that “fiscal policy and the government’s response to supply constraints must do their share.”

“The BSP is acting on the monetary side. The government must match that resolve through better spending, stronger supply systems and early preparation to protect those who need help most and make sure today’s response to inflation does not become tomorrow’s fiscal problem,” FINEX said.

The business group said the government should protect agricultural production, secure food supplies early, and prepare water and power systems as a strong El Niño is expected to extend into 2027.

FINEX also said the government should lower logistics and distribution costs and continue to improve the ease of doing business.

“Making it easier to do business can attract more private capital into agriculture, logistics, energy, manufacturing, and infrastructure. The government does not have to solve every problem by spending more. It needs to spend better, execute better and make it easier for businesses to invest alongside it,” it said.

FINEX said the government should protect vulnerable households but maintain fiscal discipline through targeted temporary assistance for the most affected. — Erika Mae P. Sinaking and Aaron Michael C. Sy