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Rising Oil Prices Propel US Dollar; Philippine Peso Hits Record Low

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Photo courtesy of Manila Bulletin

The Philippine peso continued its decline against the US dollar, falling to ₱60.748 on March 31. This marks the third consecutive day of record lows as rising oil prices and global uncertainties favor the dollar. Trading volume also decreased significantly, highlighting the peso's weakening position in currency markets.

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This drop is attributed to increased energy costs widening the Philippines' trade deficit, compelling investors to gravitate towards safer currencies. The peso began the day at ₱60.65, reaching an intraday low of ₱60.75. A trader indicated that while short-term forecasts remain bleak with values possibly touching ₱61 to $1, stabilization in oil prices could strengthen the peso.

Expert opinions underscore the impact of volatile oil prices on the peso. Jonathan Ravelas from Reyes Tacandong & Co. notes the ongoing demand for dollars amid Middle East tensions is pressuring the peso. Michael Wan from MUFG Global Markets Research echoes these concerns, warning that prolonged geopolitical tensions may worsen the peso's performance due to increasing risk aversion and a growing trade deficit.

Looking ahead, analysts foresee a continued struggle for the peso if energy-related uncertainties persist. Expected trading ranges are anticipated to be between ₱60.6 and ₱60.9 to the dollar, unless a resolution in current global issues arises to stabilize oil prices and support the currency.

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image.png  Adapted by ASEAN Now · Manila Bulletin · 31 Mar 2026

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