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| It was the first time that the peso fell to below 60- to-USD level |
The Philippine peso slumped to a record low on Thursday, breaching the 60-to-the-dollar level for the first time in history.
The peso opened at Php59.9 and dropped to an
intraday low of Php60.4, its lowest level on record, before closing the day at Php60.10,
58 centavos weaker than its previous finish of Php59.52 on Wednesday.
The plunge came amid escalating tensions in the
Middle East, which caused investors to buy into the US dollar, generally
regarded as “safe haven” currency.
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Analysts said the weakening of the peso was directly
tied to the rise in crude oil prices after Iran launched retaliatory attacks on
some energy facilities across the Middle East, including Qatar.
The shift of investments to the greenback gained
further support after the US Federal Reserve on Wednesday held interest rates
steady and warned of an “uncertain” outlook because of the intensified war in
Iran.
The weakening of the peso dealt a blow to President
Ferdinand Marcos’ declared intention early this year to keep the peso above the
60 to the USD level.
As the Middle East remains in turmoil, the Bangko
Sentral ng Pilipinas said Wednesday that it was closely monitoring the impact
of the conflict on the Philippine economy.
“Price stability is the BSP’s main mandate. As such, the BSP is assessing the potential impact of higher oil price on the price of fertilizer, transport fares, and inflation in general,” it said.
Meantime, overseas Filipino workers are once again seen as buoying up the moribund economy with their remittances which grew 3.5% to US$3.02 billion in January 2026 alone.
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