Peso slumps back to record low 61.75 per dollar as oil prices climb

The Philippine peso closed at its all-time low of P61.75:$1 on Wednesday, dragged by the movement of global crude oil prices that have surged due to renewed tensions between the United States and Iran.

The local currency shed 0.5 centavos to close at an intraday low of P61.75:$1, matching the record low first hit on May 18, 2026.

According to Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort, Wednesday’s depreciation was due to global oil prices hitting new one-month highs. Brent crude futures have increased by 2.12% ot $1.89 to $91.11 a barrel by 0112 GMT, as reported by Reuters.

This comes as the United States military late Tuesday said that it began its latest strikes on Iran to mark the 11th straight night of attacks. However, US Secretary of State Marco Rubio said the US is still willing to negotiate an end to the conflict.

“As a result, Fed Fund Futures fully priced in a possible +0.25 Fed rate hike by October 2026 (earlier vs. the previous trading day’s December 2026 and fully priced in another +0.25 Fed rate hike by March-April 2027),” he said in a mobile message.

Ricafort also attributed Wednesday’s depreciation to the performance of local equities, which declined for the second straight trading day.

The main PSEi lost 65.95 points or 1.04% to 6,267.85. The broader All Shares index shed 18.23 points or 0.53% to 3,421.35.

“The local bourse ended lower as investors turned cautious amid continued peso depreciation, prompting profit-taking across the market,” Regina Capital Development Corp. head of sales Luis Limlingan said in a mobile message.

“The selling pressure pushed the benchmark index below the 6,300 level as sentiment remained subdued. Attention is likely to remain on currency movements and broader market conditions in the near term,” he added.

More than 711.219 million shares, valued at P6.490 billion, changed hands. Decliners led advancers, 105 to 89, while 48 issues were unchanged. —LDF, GMA News