Peso plunges to P60.1 to US dollar

The Philippine peso plummeted to P60:$1 level for the first time on Thursday as global oil prices shot up amid the escalation of the conflict in the Middle East, with Iran threatening to attack oil and gas targets throughout the Gulf after a hit on one of its gas deposits.

The local currency shed 58 centavos to close Thursday at P60.1:$1 versus the P59.52:$1 the previous trading day. This is the worst close of the peso after surpassing the previous record-low of P59.87:$1 hit on March 16, 2026

The peso earlier in the trading day hit P60.4:$1, the weakest showing of the local currency after hitting an intraday low of P59.95:$1 on March 16, 2026. It opened the session at P59.9:$1

This comes as benchmark Brent crude prices climbed around 5% to over $108 after Iran’s Pars gas field, the Iranian sector of the world’s natural gas deposit which it shares with Qatar across the gulf, was hit on Wednesday.

Iran has since come out with a list of prominent regional oil and gas targets of Saudi Arabia, the United Arab Emirates, and Qatar, which it said were “direct and legitimate targets” and should be evacuated at once in the coming hours.

Local economists have long warned that higher global crude oil prices could lead to higher inflation and slow down economic growth.

“Reaction to retaliation by Iran. Knee-jerk reaction. If this escalates we could see it staying above 60,” Reyes Tacandong & Co. senior adviser Jonathan Ravelas said in a mobile message.

“The US dollar/Philippine peso exchange rate went up to a new record highs… after global crude oil prices went up lately after attacks on some oil/energy infrastructrue in the Middle East,” Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort said in a separate mobile message.

Ricafort also noted that the dollar strengthened after cautious signals from the US Federal Reserve which kept rates unchanged in its latest meeting, with markets now pricing in a rate cut in the latter part of 2027.

The Department of Economy, Planning, and Development (DepDev) earlier warned that inflation could accelerate to as high as over 7% should the Middle East conflict escalate further and for a longer period.

The government is now looking at the possibility of suspending the excise tax on fuel products, which the DepDev said could cut local prices per liter by P10 for gasoline, and P6 for diesel.

For its part, the Bangko Sentral ng Pilipinas (BSP) has maintained that it does not target a specific level, it intervenes to temper market volatility while continuing to watch for potential economic implications of the global oil price shock on the country.

“On the peso, the BSP stresses that it operates in the foreign exchange market to smooth excess volatility and maintain orderly conditions,” it said in a statement.

“This is consistent with a flexible exchange rate policy, with intervention limited to tempering large swings that could affect inflation rather than defending any specific level,” it added.

Senator Joel Villanueva, chairperson of the Senate Committee on Banks, Financial Institutions, and Currencies, expressed hope that despite the Middle East conflict’s impact on the peso-dollar exchange rate, the Philippine peso will still be able to “demonstrate resilience and recover.” 

“While a weaker peso may provide some benefit to Overseas Filipino Workers (OFWs) and their families, it also raises concerns regarding the increased cost of servicing dollar-denominated debt,” the senator said in a message to reporters.

Villanueva also said he looks forward to appropriate and timely measures from the BSP regarding the matter “to help maintain exchange rate stability at a manageable level.”

Malacañang has previously said that President Ferdinand “Bongbong” Marcos Jr. wanted to avoid the peso sliding to P60 against the dollar as this would raise the country’s debt. — with Giselle Ombay/LA/RSJ/VBL, GMA Integrated News