Peso depreciates to P60.748:$1 due to high dollar demand and oil prices

The Philippine peso slid to a fresh record low on Tuesday, as strong dollar demand persisted amid escalating tensions between the United States and Iran.

The peso shed 5.8 centavos to close at P60.748:$1 from Monday’s finish of P60.69:$1, the previous all-time low.

The peso's close on Tuesday is the eighth record low that the Philippine currency hit since the start of the Middle East conflict when the US and Israel attacked Iran on February 28.

It is the 10th all-time low since the start of 2026.

The peso's previous record lows in 2026 were:

• March 30: 60.69
• March 28: 60.55
• March 23: 60.3
• March 19: 60.1
• March 16: 59.87
• March 13: 59.735
• March 9: 59.50
• January 15: 59.341
• January 7: 59.355

The peso also hit an all-time low on December 9, 2025, when it hit P59.22 against the dollar.

Economists continue to attribute the depreciation to higher demand for the dollar, used to buy petroleum products in the world market, amid the ongoing conflict.

“The peso slipped to 60.748, weighted by volatile oil prices and sustained dollar demand as Middle East risks linger,” Reyes Tacandong & Co. senior adviser Jonathan Ravelas said in a mobile message.

WTI crude oil prices are hovering at $102.32 per barrel and Brent crude at $106.88 per barrel as of writing.

This comes as US President Donald Trump issued a new warning that the US would obliterate Iran’s energy plants and oil wells should Tehran continue to close the Strait of Hormuz. This key global shipping corridor carries around a fifth of the world’s oil.

Iran over the weekend said it was ready to respond should the United States deploy its troops after it accused Washington of planning to send in its ground forces while pushing for negotiations to end the conflict.

Malacañang earlier on Tuesday noted that while the President did not want the depreciation of the peso, the weakness is brought about by the ongoing conflict in the Middle East.

Palace Press Officer Undersecretary Claire Castro in January said that President Ferdinand “Bongbong” Marcos Jr. wanted to avoid the peso hitting P60:$1, as this would raise the country’s debt. –NB, GMA News