The local currency has been affected by a number factors, especially the ongoing conflict in the Middle East.
On Tuesday, March 31, the foreign exchange trade closed for the final time this month and the Philippine peso was not able to make any recovery from its close at its lowest level the previous day.
From the PHP60.69 that it recorded on the penultimate day of the third month and the first quarter of 2026, the peso dipped further and logged a currency rate of PHP60.784 against the US dollar. It is the eighth time that the peso sunk to its lowest levels this month alone.
Meanwhile, and amidst the current circumstances, the Bangko Sentral ng Pilipinas (BSP) also disclosed on Tuesday its projection for the inflation rate in the country this month.
In a statement, it said, “[t]he BSP projects March 2026 inflation to be within the range of 3.1 to 3.9 percent.“
“Inflation risks have intensified with upward price pressures arising from the significant increase in domestic petroleum prices, higher rice prices, increased electricity charges in Meralco-serviced areas, and depreciation of the peso,” furthered the monetary board.
However, the anticipated lower prices of vegetables, fish, and meat, the central bank said may help temper inflation, although the upside pressures “continue to warrant close monitoring.”
“The BSP will remain vigilant and guided by incoming data, specifically on inflation and growth prospects. We will continue to monitor recent developments in the Middle East for their implications on inflation and economic activity,” it added.