Peso falls to all-time low Rising oil prices against the US dollar on Monday raised concernsConcerns over inflation and environmentnominal recession.
The local unit fell 14 centavos to close at P60.69 against the greenback from its previous record-low of P60.55 on Friday, data from the Bankers Association of the Philippines showed.
Year to date, the peso has declined by P1.90 or 57.9832% from its close of P58.79 on December 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 P60.84, surpassing the local currency's previous all-time intraday low of P60.57 hit on Friday.
On Friday, dollar turnover increased from $1.336 billion to $2.007 billion.
“The peso hit new lows today following reports of a possible land-based military deployment of US troops near Iran,” the first trader said in a Viber message.
Reuters US President Donald J. Trump was quoted as saying Iran's new leader has been “very reasonable” as more US troops arrived in the region and Tehran warned it would not accept an insult.
Markets have been in turmoil this month after the Iran conflict effectively closed the Strait of Hormuz, a chokepoint for about a fifth of global oil and gas flows, sending Brent crude heading for a record monthly rise.
The US dollar index was almost 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 increase since July 2025.
Jonathan L. Reyes, Senior Advisor, Tacundong & Co. The peso was also dragged down by rising expectations of a prolonged war, Ravelas said in a Viber message.
A prolonged war in the Middle East is expected to put pressure on the Philippines, which imports almost all of its oil requirements from Middle Eastern countries. The Philippines is now looking for alternative sources to overcome the growing energy shortage.
The Bangko Sentral ng Pilipinas raised its inflation forecast for 2026 to 5.1% from 3.6% previously and cut its 2026 GDP growth forecast to 4.4% from 4.6% previously.
A second trader said via Viber that the local currency's weakness continued to be driven by a stronger dollar and strong demand for oil, adding that high liquidity had exacerbated the peso's decline.
Rizal Commercial Banking Corp. chief economist Michael L. Demand for the greenback was also driven by the government's recent purchases of oil, which are denominated in dollars and other foreign currencies, Ricafort said in a Viber message.
Another trader said the local unit could reach the P61-per-dollar level, though “not in a straight line because the market is stretched.”
For Tuesday, Mr. Ricafort and the first trader saw the peso rising between P60.55 and P60.80 against the greenback. — AMCS with reuters