Philippine President Ferdinand Marcos Jr. signaled his government will tolerate a weaker peso, stating there's a limit to defending the currency as market forces push the dollar higher. The peso hit 60-per-dollar, its first historical breach, driven by high oil prices and the Middle East conflict. Marcos emphasized his administration won't deplete reserves to prop up the currency, acknowledging the dollar's inevitable movement. Foreign reserves reached $112.7 billion, offering some defense, but the peso remains pressured alongside other Asian currencies. Growth forecasts face significant headwinds; Marcos called reaching 8% growth by 2028 'tough,' citing the war's impact on energy costs and the need to 'redraw everything.' The economy expanded just 3% in Q4 2025, down from previous targets, after a public works scandal and slowing state spending.

Marcos remains confident the economy will expand 6% by 2028, pointing to investment, a skilled workforce, and semiconductor advancements moving into design and data centers, supported by tax incentives and business reforms.