Peso closes at new record low vs. US dollar at P60.3:$1

The Philippine peso retreated against the US dollar to carve out a new all-time low on Monday, as the conflict in the Middle East escalated over the weekend after both Iran and the United States issued threats against one another.

The local currency shed 20 centavos to close at P60.3:$1, its weakest performance to date after surpassing last Thursday’s close of P60.1:$1, the previous record low.

There was no trading on Friday, March 20, 2026, which had been declared a regular holiday in observance of Eid’l Fitr, marking the end of the Islamic holy month of Ramadan.

?“Reflects a strong dollar, higher oil widening the import bill, and risk-off flows,” a trader said in a mobile message.

“The ’60 handle’ looks more like a near-term overshoot than a new anchor — likely to linger while uncertainty is high, but not sticky. A pullback below 60 is still plausible once external pressures ease,” the trader added.

In Maki Pulido’s “24 Oras” report, economist Emmanuel Leyco said tthe record low peso is a result of the high demand for US dollars, which is used to buy petroleum products in the world market.

“Palagay ko hindi na 'yan bababa sa katulad nung dating na nasa 57,58, malaki ang demand natin sa dolyar kasi kailangan nating bumili ng petrolyo sa mas mataas na presyo,” Leyco said.

(I believe it will not go down to the previous 57, 58 pesos, our demand for the dollar is high because we need to petroleum products at higher prices.)

Since the conflict in the Middle East began, the Philippine Stock Exchange has dropped by more than 500 points.

“It’s a natural reaction to uncertainty, with what prices of commodities are also showing. It’s not driven by fundamentals. It’s driven by the knee-jerk reaction of a lot of the investors, so as long as we’re good in terms of the macro fundamentals,” said Roel Refran, Philippine Stock Exchange executive vice president.

According to financial analyst Jonathan Ravelas, selling stocks during an unfavorable event does not have an impact on the company's profits. 

Businesses will be more concerned with the rising cost of transportation and electricity, which are the economic effects of the war.

“Walang effect sa kanila yun kumbaga yung pera na ni-release nila, ginagamit na yan ng kumpanya. Nakuha na nila ang perang yan. Ang binebenta lang is the ownership na meron,” said Ravelas.

(It has no effect on them since the money they released is already being used by the company. They already got that money. What they are selling is their ownership.)

But foreign investors who plan to do business in the country may postpone the deal or withdraw if the Middle East conflict continues, Leyco said. 

Foreign investors who are currently investing in the country may also withdraw, but he said it will not be immediate.

“Ang mga foreign investors ay mag-iisip din kung paano yung magiging cost of production nila dito sa Pilipinas. Ang unang titingin nila diyan ay yung kanilang gastos sa utilities: Tataas ba ang singil sa kuryente? Tataas ba ang singil sa tubig? Gaano kataas ang aabutin ng pagtaas ng presyo ng petroleum?,” Leyco said.

(Foreign investors will also be thinking about the cost of production here in the Philippines. The first thing they will look at is their utility costs, including electricity and petroleum products.)

The mandate of the Central Bank of the Philippines is to stabilize the value of the peso and control inflation through the issuance of policies.

The Monetary Board is scheduled for a meeting on April 23.
US President Donald Trump over the weekend issued an ultimatum that the US would “obliterate” Iran’s power plants should it fail to reopen the Strait of Hormuz, a key global shipping corridor which carries around a fifth of the world’s oil, within 48 hours.

Iran responded by saying it would take out energy and water infrastructure across the Gulf should Trump follow through on his threat.

“The US dollar/peso exchange rate again went up... ahead of Trump’s 48-hour deadline for Iran to reopen the Strait of Hormuz; while Iran threatened to completely close the Strait,” Rizal Commercial Banking Corp. chief economist Michael Ricafort said in a message to reporters.

“Peso weakness due to rising inflation expectations given increasing global oil prices as US-Iran threats intensify,” Security Bank chief economist Angelo Taningco said in a separate message.

Malacañang previously said that President Ferdinand “Bongbong” Marcos Jr. wants to avoid the peso sliding to P60 per dollar, as this would raise the country’s debt.

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.

Philippine equities also posted declines on Monday, with the main PSEi down by 119.44 points or 1.98% to 5,899.18 at the closing bell. The broader All Shares index lost 68.28 points or 2.04% to 3,276.59.

All sectoral indices closed on the red — financials down 2.50%, industrial 1.16%, holding firms 2.99%, property 2.98%, services 0.95%, and mining and oil 8.71%.

More than 1.356 billion shares, valued at P8.103 billion, changed hands. Decliners led advancers, 167 to 46, while 58 issues were unchanged.

“The Philippine market ended significantly lower as ongoing conflict in the MIddle East showed no signs of de-escalation, dampening investor sentiment,” Regina Capital Development Corp. head of sales Luis Limlingan said in a separate mobile message.

“Rising oil prices further weighed on the market, heightening concerns over inflation and input costs. As a result, cautious trading prevailed amid expectations of sustained price pressures and potential policy tightening,” he added.—LDF/RF, GMA Integrated News