Peso Slides Near P60 as Middle East Tensions Shake Markets

The Philippine peso weakened further against the U.S. dollar on Friday, sliding close to the P60 mark as growing tensions in the Middle East fueled uncertainty in global financial markets.

The local currency briefly dropped to P59.75 per dollar before closing at P59.735, according to data from the Bankers Association of the Philippines.

The peso opened the trading day at P59.55, already weaker than Thursday’s closing rate of P59.385. It initially strengthened in early trading, hitting a day’s high of P59.41, but quickly lost momentum as the session progressed, eventually slipping deeper into weaker territory.

Currency traders reported heightened volatility throughout the day as investors monitored geopolitical developments in the Middle East, which have raised concerns about potential disruptions in global oil supply and broader economic instability.

Trading activity also picked up significantly. Total foreign exchange transactions reached $2.2275 billion, higher than the $1.918 billion recorded during Thursday’s trading session.

The peso’s latest slide has once again raised fears that the local currency could soon breach the psychologically important P60-to-the-dollar level, a threshold closely watched by markets and economic analysts.

However, some economists believe the currency may still avoid crossing that line—at least for now.

RCBC Chief Economist Michael Ricafort said the peso is unlikely to weaken to P60 per dollar in the near term, noting that the Bangko Sentral ng Pilipinas (BSP) has been actively intervening in the foreign exchange market.

“The US dollar/Philippine peso is unlikely to hit 60 soon. Not soon,” Ricafort said, adding that the central bank has recently stepped in to stabilize the currency.

Market watchers say the direction of the peso in the coming days will largely depend on global geopolitical developments, oil price movements, and continued intervention by the BSP.