The peso fell to record lows against the US dollar on Monday as oil prices rosecerns over inflation and the economic decline.
The local unit declined by 14 cents to close at P60.69 against the greenback from its record low close of P60.55 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 close of P58.79 on Dec. 29, 2025.
The peso opened Monday’s trading session flat at P60.55, which was also its daily best.
Its weakest level for the day was P60.84, surpassing the local currency’s previous intraday low of P60.57 logged on Friday.
Dollar sales jumped to $2.007 billion from $1.336 billion on Friday.
“The peso reached new highs today following reports that US troops may be stationed on the ground near Iran,” the first trader said in a Viber message.
Reuters quoted US President Donald J. Trump as saying Iran’s new leaders were “very reasonable,” as more US troops poured into the region and Tehran warned it would not accept humiliation.
Markets have been shaken this month after the conflict in Iran effectively closed the Strait of Hormuz, the world’s fifth-largest oil and gas hub, driving Brent crude to a monthly high.
The US dollar index was almost unchanged at 100.19. It reached 100.54 in mid-March, its highest level since May 2025, and was on track for its biggest monthly increase since July 2025.
The peso was also dragged down by growing expectations of a protracted war, Reyes Tacandong & Co. Senior Counsel Jonathan L. Ravelas in a Viber message.
The protracted war in the Middle East is expected to put pressure on the Philippines, which imports almost all of its oil needs from Middle Eastern countries. The Philippines is now looking to find alternative sources to ease the coming energy shortage.
The Bangko Sentral ng Pilipinas raised its 2026 inflation forecast to 5.1% from 3.6% previously and lowered its 2026 gross domestic product growth estimate to 4.4% from 4.6% previously.
A second trader said via Viber that local currency weakness continued to be a function of the strong dollar and strong oil demand, adding that the high currency exaggerates the peso’s decline.
Demand for the greenback was also fueled by the government’s recent oil purchases, which are paid in dollars and other foreign currencies, said Rizal Commercial Banking Corp. economist. Michael L. Ricafort in a Viber message.
A second trader said the local unit could reach the P61-dollar level, although “it is not in a straight line as the market is stretched.”
On Tuesday, Mr. Ricafort and the first trader saw the peso moving between P60.55 and P60.80 against the greenback. – AMCS with Reuters
