Peso falling faster than other currencies in Asia—S&P

Emerging market (EM) Asian currencies continue to bear the brunt of ongoing geopolitical rifts, with the peso suffering the deepest decline among the region’s energy-importing economies since conflicts in the Middle East flared up nearly four months ago.

- By DERCO ROSAL

According to a report published last Wednesday by global credit rating agency S&P Global Ratings, the peso has depreciated by roughly 7.1 percent against the United States (US) dollar since late February 2026.

“Adverse risk sentiment and higher current account demands to fund energy imports are weighing on currencies,” said Vishrut Rana, S&P Global Ratings’ senior economist for EM Asia.

A widening current account deficit exerts downward pressure on the peso because it reflects a greater demand for foreign exchange to pay for imports than the supply generated by exports and remittances. As a net energy importer, the Philippines belongs to a regional cohort facing “deeper depreciation” than net exporters.

The peso’s decline is notably steeper than other net importers, such as the Thai baht (5.2 percent) and the Indian rupee (4.9 percent), and far outpaces the Vietnamese dong (0.4 percent). Locally, only the Indonesian rupiah has suffered a sharper drop, shedding around 7.7 percent.