Currency Pressure in 2026: How a Weaker Rupiah, Peso and Dong Affect Study Abroad Budgets
By Muntasir Minhaz • Published Aug 07, 2026 • Money & Budgeting, Education News & Policy, Study in Southeast Asia
The rupiah, peso and dong all weakened against the US dollar through 2025 and into 2026, so tuition and living costs billed in dollars, pounds or Australian dollars now cost more in local currency than a year earlier.
💵 The rupiah traded near IDR 16,957 per US dollar in March 2026 as Indonesia's current account deficit widened.
The Philippine peso hit a record low near PHP 61.85 per dollar in July 2026, and Bangko Sentral ng Pilipinas raised its policy rate to 4.75% by mid-2026 in response.
The Vietnamese dong weakened around 2-3% against the dollar since the start of 2026.
A fixed foreign tuition bill needs more rupiah, peso or dong to cover than it did a year earlier, even though the dollar price has not changed.
⏱️ Paying tuition early and splitting remittances into smaller transfers reduces exposure to further currency swings.
Why the rupiah, peso and dong lost ground in 2025-2026
A stronger US dollar, higher oil prices and shifting interest rate expectations weakened several Southeast Asian currencies through 2025 and into 2026. Indonesia, the Philippines and Vietnam all import a large share of their fuel, so rising oil prices in the first half of 2026 added pressure on their currencies at the same time capital moved toward dollar assets.
The effect on families funding study abroad is direct. Tuition, rent and living costs billed in US dollars, British pounds or Australian dollars take more rupiah, peso or dong to cover than the same bill took a year earlier, even though the foreign price tag has not moved.
How far each currency moved
| Currency | Move | Date |
|---|---|---|
| Indonesian rupiah | Traded near IDR 16,957 per US dollar, weakening alongside a widening current account deficit | March 2026 |
| Philippine peso | Fell to a record low near PHP 61.85 per US dollar | July 2026 |
| Vietnamese dong | Weakened around 2-3% against the US dollar since the start of the year | Jan-Aug 2026 |
What is driving the moves
Indonesia recorded a USD 9.1 billion balance of payments deficit in the first quarter of 2026, and its current account deficit widened to USD 4.0 billion, 1.1% of GDP, from USD 2.5 billion the previous quarter, according to the Jakarta Post . Parents interviewed said tuition and living costs for children studying in Europe now exceed the budget they set aside years earlier.
Bangko Sentral ng Pilipinas raised its policy rate twice in 2026, first by 25 basis points to 4.5% in April, its first hike in over two years, then again by 25 basis points to 4.75% in June, as the peso repeatedly touched record lows against the dollar, Bloomberg reported. Analysts at UOB project the dong to trade in a VND 25,900-26,300 range against the dollar through 2026, easing gradually as the year goes on, per The Investor .
What this means for your study abroad budget
A fixed tuition bill in a foreign currency gets more expensive in local currency terms when your home currency weakens. A university charging a flat annual fee in US dollars means a family paying in rupiah, peso or dong converts more local currency to reach the same dollar amount, on top of paying rent, food and transport abroad in that same foreign currency.
Students on scholarships paid directly in the destination currency carry less of this risk. Self-funded students and families paying tuition out of savings or salary carry the full impact of any currency move between the day they set a budget and the day they pay.
How to protect your budget from further swings
⏱️ Pay tuition deposits and first-semester fees as early as your university allows, before your currency weakens further.
💵 Ask your bank or a licensed transfer service about forward contracts or rate locks if you send large sums over several semesters.
Split remittances into smaller, regular transfers instead of one large transfer, to average out rate swings over time.
Compare transfer providers. Bank wire rates and transfer app rates differ by several percentage points on the same day.
Check whether your scholarship, if you have one, pays in the destination currency or your home currency, since that changes how much currency risk you carry.