Peso Hits Record Low at ₱60.3:$1 as Middle East Conflict Escalates

The Philippine peso slid to a new record low, closing at ₱60.3 against the US dollar, as escalating conflict in the Middle East rattled global markets and boosted demand for the safe-haven greenback.

Currency traders said heightened geopolitical tensions have strengthened the US dollar, with investors shifting funds to safer assets amid fears of a wider regional conflict. The surge in the dollar placed renewed pressure on emerging market currencies, including the peso.

Analysts noted that rising oil prices triggered by concerns over potential supply disruptions in the Middle East are also weighing heavily on the Philippine economy, which relies on imported fuel. Higher oil costs could further widen the country’s trade deficit and add to inflationary pressures.

“The stronger dollar and geopolitical risks are driving the peso lower,” an analyst said, noting that market sentiment remains fragile as developments in the Middle East continue to unfold.

The peso’s decline comes at a time when global financial markets are already facing uncertainty, with investors closely monitoring geopolitical developments and their potential impact on energy supply and inflation.

For the Philippines, a weaker peso could lead to higher prices for imported goods, particularly fuel and food, adding strain on consumers and businesses. However, it may also provide some relief to exporters and overseas Filipino workers, whose dollar earnings translate to higher peso remittances.

Market watchers expect volatility to persist in the coming days, as traders react to further developments in the Middle East and signals from the US Federal Reserve on interest rates.

The Bangko Sentral ng Pilipinas (BSP) has yet to issue a statement on the peso’s latest movement, but officials have previously said they are prepared to step in to manage excessive volatility in the currency market.