This drove the dollar stronger, dragging the peso to a new record-low close of P61.847 against the greenback on July 24. “As geopolitical tensions ease in 2027, the Fed is expected to pivot to a more dovish stance. The peso could also gain ground next year as risk-on sentiment from faster economic growth drives dollar inflows to the country. “Despite the expected 2027 recovery, economic growth may remain challenging, resulting in a gradual rather than aggressive peso appreciation. Furthermore, potential rate cuts by the Bangko Sentral ng Pilipinas in 2027 may make local financial assets comparatively less attractive to global investors.”