Philippine Peso Weakens Toward Record Low

2026-04-24 03:15 By Erika Ordonez 1 min. read

The Philippine peso weakened past 60.7 per USD, trading near its record low as broad dollar strength and risk-off sentiment continued to pressure Asian currencies.

Escalating Middle East tensions, including renewed disruptions in the Strait of Hormuz following vessel seizures and heightened US naval warnings, kept oil prices elevated.

Higher crude prices increase inflation risks for import-dependent economies such as the Philippines, widening external payments burden and supporting demand for the US dollar.

At the same time, safe-haven flows into the dollar remained firm amid lingering uncertainty over US–Iran standoff.

Meanwhile, domestic policy offered only partial offset.

The Bangko Sentral ng Pilipinas raised rates by 25 basis points to 4.5%, its first hike in over two years, citing a weaker inflation outlook driven by higher global oil and food prices.

BSP Governor Eli Remolona also signaled further tightening remains possible if needed, reinforcing a more proactive policy stance.



News Stream
Philippine Peso Weakens Toward Record Low
The Philippine peso weakened past 60.7 per USD, trading near its record low as broad dollar strength and risk-off sentiment continued to pressure Asian currencies. Escalating Middle East tensions, including renewed disruptions in the Strait of Hormuz following vessel seizures and heightened US naval warnings, kept oil prices elevated. Higher crude prices increase inflation risks for import-dependent economies such as the Philippines, widening external payments burden and supporting demand for the US dollar. At the same time, safe-haven flows into the dollar remained firm amid lingering uncertainty over US–Iran standoff. Meanwhile, domestic policy offered only partial offset. The Bangko Sentral ng Pilipinas raised rates by 25 basis points to 4.5%, its first hike in over two years, citing a weaker inflation outlook driven by higher global oil and food prices. BSP Governor Eli Remolona also signaled further tightening remains possible if needed, reinforcing a more proactive policy stance.
2026-04-24
Philippine Peso Falls Back Toward Record Low
The Philippine peso fell to around 60 per USD, moving back toward its record low reached on March 30, as geopolitical tensions in the Middle East continued to weigh on market sentiment. Ongoing disruptions in key oil shipping routes, particularly the Strait of Hormuz, have pushed oil prices higher. As a major importer of crude oil, the Philippines remains highly exposed to these developments, which have already lifted domestic fuel costs and added upward pressure to inflation, while also increasing risks of below-target growth, a wider current account deficit, and potential headwinds to remittance inflows. The Bangko Sentral ng Pilipinas has urged banks to step up efforts to encourage firms to hedge foreign exchange exposure, highlighting the country’s vulnerability to external shocks. It also stressed that its priority is to maintain smooth market functioning and ensure the continued flow of funds, even amid oil price volatility, peso weakness, and global financial uncertainty.
2026-04-20
Philippine Peso Weakens
The Philippine peso fell to 60.4 per USD, approaching a record low, as risk sentiment took a hit again following the collapse of US–Iran peace talks and US plans to blockade Iranian port traffic. The US forces said it would begin blockading all Iranian ports at 1400 GMT on Monday, while still allowing vessels not traveling to or from Iran to pass through the Strait of Hormuz. The conflict, which began in late February, has escalated into a broader regional confrontation, unsettling global markets and pushing oil prices higher. In an off-cycle meeting last month, the Bangko Sentral ng Pilipinas kept the rate at 4.25%, opting against tightening policy despite rising inflationary pressures stemming from the war, in order to support the economy’s fragile recovery from a recent graft scandal. Meanwhile, the latest data showed inflation accelerating to a 20-month high of 4.1% in March, breaching the BSP’s 2–4% target range and increasing the likelihood of a rate hike in the coming months.
2026-04-13