Philippine Peso Hits Record Low Above 60

The Philippine peso depreciated past the key 60-per-dollar mark, hitting a fresh record low as surging oil prices, driven by escalating tensions in the Middle East, weigh on the country’s economic outlook. The currency dropped as much as 1.5%, reflecting the heightened risks posed to the Philippines, which relies on imports for more than 90% of its crude oil. Earlier this week, the Bangko Sentral ng Pilipinas (BSP) said it had stepped in as the peso approached this level, but noted that its interventions aim to moderate sharp swings that could affect inflation rather than defend a specific exchange rate. The peso has now weakened more than 4% this month, making it one of the worst-performing currencies in Asia. Economists say the Philippines is particularly vulnerable to inflation and growth pressures amid high energy costs.

The Philippine peso weakened toward the psychological 60-per-dollar level, hitting a fresh record low as higher energy prices pressured the currency. The peso remains particularly vulnerable to rising oil costs, given the country’s heavy reliance on imported fuel, with more than 90% of crude supplies sourced from the Middle East. Crude prices held around $100 a barrel, extending their surge as tensions in the Iran conflict showed no signs of easing. In response, Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. said the central bank had intervened in the foreign-exchange market to stabilize the currency, though the move did little to curb losses. Even before the escalation of the Iran conflict, officials had already identified the 60-per-dollar level as a key threshold. Earlier this month, Remolona warned that persistently high oil prices could force the central bank to consider a rate hike.

The Philippine peso weakened past 59.5 per dollar, marking a new record low as oil topped $100 a barrel for the first time since 2022, weighing on the country’s oil-importing economy. Oil prices surged further amid expectations of prolonged supply disruptions from the ongoing Middle East conflict, now in its second week. Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. warned that escalating tensions could create economic headwinds, affecting both overseas remittances and inflation. Analysts at Nomura raised their 2026 inflation forecast for the Philippines to 3.2% from 2.5%, largely due to elevated oil costs. With more than 90% of its crude imports coming from the Middle East, the country remains highly exposed to oil shocks.