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| Each USD now equals to Php60.69 |
The Philippine peso hit a fresh record low today, Monday, closing at Php60.69 to the US dollar, surpassing the previous low of Php60.55 set just three days ago.
The peso even dipped to an intraday low of Php60.84
before rising slightly before the close.
As the HK dollar is pegged to the US dollar, this
meant a corresponding drop in the peso value, with the latest exchange rate
listed as Php7.76 to the HK dollar.
This marked the seventh record low for the Philippine
currency this month alone, driven by the surging global oil prices and a strong
dollar amid fears of a prolonged, full-scale war in the Middle East.
The weakening currency has driven up local fuel prices
as the country began buying up supplies from abroad to ensure the gas pumps do
not run dry, and cause further havoc on the economy.
Analysts warn that if tensions in the Middle East do
not ease up soon, the peso could drop to as low as Php61 to the greenback.
Fears that the war would escalate mounted as Yemen’s
Houthi rebels joined the fray Saturday, firing a number of cruise missiles and
drones at key sites in Israel.
This raised concern about the war spreading to the
Red Sea, where Saudi Arabia has rerouted much of its oil exports to avoid the
Strait of Hormuz which Iran has sealed off to all but a few allies that use it
to transport crude and gas supplies.
