THE PESO slid to an all-time low against the US dollar on Monday as soaring oil prices raise concerns over inflation and an economic slowdown.
The local unit declined by 14 centavos to close at P60.69 against the greenback from its previous record-low P60.55 finish on Friday, data from the Bankers Association of the Philippines showed.
Year to date, the peso has depreciated by P1.90 or 57.9832% from its P58.79 finish on Dec. 29, 2025.
The peso opened Monday’s trading session flat at P60.55, which was also its intraday best.
Its weakest level of the day was at P60.84, which surpassed the local currency’s previous all-time intraday low of P60.57 logged on Friday.
Dollars traded jumped to $2.007 billion from $1.336 billion on Friday.
“The peso reached new lows today following reports of potential land-based military deployment of US troops near Iran,” the first trader said in a Viber message.
Reuters quoted US President Donald J. Trump as saying that Iran’s new leaders have been “very reasonable,” as more US troops arrived in the region and Tehran warned it will not accept humiliation.
Markets have been rattled this month after the Iran conflict effectively shut the Strait of Hormuz, a chokepoint for about a fifth of global oil and gas flows, driving Brent crude toward a record monthly rise.
The US dollar index was roughly unchanged at 100.19. It hit 100.54 in mid-March, its highest level since May 2025, and was on track for its biggest monthly rise since July 2025.
The peso was also dragged by growing expectations of a prolonged war, Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas said in a Viber message.
A prolonged war in the Middle East is expected to put pressure on the Philippines, which imports nearly all of its oil requirements from Middle Eastern countries. The Philippines is now looking to find alternative sources to alleviate a looming energy shortage.
The Bangko Sentral ng Pilipinas had raised its inflation forecast for 2026 to 5.1% from 3.6% previously and trimmed its 2026 gross domestic product growth estimate to 4.4% from 4.6% previously.
A second trader said via Viber that the local currency’s weakness continued to be a function of a strong dollar and strong demand for oil, adding that high liquidity exaggerated the peso’s drop.
Demand for the greenback was also driven by the government’s recent purchases of oil, which are settled in dollars and other foreign currencies, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
The second trader said the local unit could reach the P61-per-dollar level, though “not in a straight line as the market is stretched.”
For Tuesday, Mr. Ricafort and the first trader see the peso moving between P60.55 and P60.80 against the greenback. — AMCS with Reuters
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