The Philippine peso extended its slide past the 60-per-dollar level, closing at a fresh record low of 60.55 on Friday as global risk factors continued to favor the U.S. currency.
Data from the Bankers Association of the Philippines showed the local unit fell by 32 centavos from Thursday’s 60.23 finish, marking its third straight decline. The peso opened at 60.333, traded to a low of 60.285, and hit an intraday high of 60.57, its weakest level on record.
Market sentiment remained fragile as oil prices hovered near multi-year highs and geopolitical tensions persisted.
Analysts said dollar demand stayed firm as investors priced in energy-related risks and ongoing uncertainty in the Middle East.
“The peso weakened to 60.55 as markets begin to price in oil-related risks, reinforcing near-term dollar demand. Trading remains constraint-driven, with flows reflecting caution rather than panic. Expect range-bound trading at 60.25–60.75, as uncertainty around energy persists,” said Jonathan Ravelas, senior adviser at Reyes Tacandong & Co.
RCBC chief economist Michael Ricafort said the peso’s weakness was also driven by a stronger U.S. dollar and shifting rate expectations.
“The US dollar/peso exchange rate was again higher for the third straight day, amid some market doubts on a ceasefire on the war on Iran,” Ricafort said.
He noted that the dollar has strengthened against major currencies, while U.S. Treasury yields climbed to around 4.44 percent, reflecting expectations that the Federal Reserve may keep rates higher for longer.
Oil prices, meanwhile, remained elevated at about $95 per barrel, sustaining inflation risks and adding pressure on oil-importing economies such as the Philippines.
Despite the depreciation, Ricafort said seasonal inflows, including remittances, could offer some support to the peso, even as markets remain sensitive to developments in oil prices and global monetary policy.
