Philippine Peso Hits Record Low Against US Dollar

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The Philippine peso hit an unprecedented low of 60.40 to the dollar on March 19, pressured by high oil prices and a robust US currency. The currency opened at 59.9 but quickly depreciated, marking its weakest point against the dollar. The sharp fall is attributed mainly to soaring crude oil prices amidst geopolitical tensions in the Middle East.

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The ongoing conflict involving the United States, Israel, and Iran has kept crude oil prices near $100 per barrel. This situation poses a significant challenge for the Philippines, which relies heavily on the region for over 90% of its oil imports. Rising gas prices have exacerbated the strain on the peso and could drive it even lower, potentially hitting P61 per dollar, according to Michael Wan of MUFG Bank Ltd.

In response, the Bangko Sentral ng Pilipinas (BSP) has intervened in the currency market to stabilize the peso. BSP Governor Eli Remolona Jr. indicated that if oil prices persist at such elevated levels, an interest rate hike might be considered to curb inflation. President Ferdinand Marcos Jr. had earlier expressed his desire to avoid the peso reaching the 60-per-dollar threshold.

With the BSP's policy meeting scheduled for April 23, all eyes are on potential monetary decisions. Analysts and policymakers are closely monitoring the situation, as continued conflict in the Middle East could further affect oil supplies and fuel prices, impacting the peso's stability, reported Philstar.

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  Adapted by ASEAN Now · Philstar · 19 Mar 2026