THE Philippine peso dropped to a new record low of P63.615 against the dollar on Friday as oil prices remain elevated and amid some ‘market concerns’ over recent signals on a possible large US attack on Iran.
Data from the Bankers Association of the Philippines (BAP) showed the local currency closed at P63.615 against the dollar on Friday, 9.5 centavos weaker than its P63.52 finish against the greenback on Thursday.
Michael L. Ricafort, chief economist at Rizal Commercial Banking Corporation (RCBC), attributed the further weakening of the local currency to global crude oil prices posting ‘new five-month highs or since early May 2026.’
Ricafort added this could also be partly due to ‘some market concerns over recent signals on a possible large US attack on Iran after the November 3,2026 US midterm elections.’
Ricafort said the peso may have also weakened despite the larger-than-expected 50-basis-point rate hike by the Monetary Board on Thursday, ‘after signals from BSP Governor Eli M. Remolona Jr. that the BSP is not hiking the policy rate to defend the peso.’
Remolona said on Thursday’s monetary policy briefing that the central bank does intervene a little bit in the foreign exchange market but that is mainly to avoid swings in the exchange rate that tend to be inflationary.
For his part, Jonathan L. Ravelas, senior adviser at Reyes Tacandong and Co., said despite the rate hikes, the stronger dollar remains the ‘bigger story.’
‘As long as US inflation stays sticky and renewed concerns in the Middle East conflict, the peso is likely to remain under pressure, with USD/PHP trading near 63.50 to 63.75,’ added Ravelas.
Within Friday’s trading session, the peso’s lowest point was at P63.62 against the dollar while its strongest point was seen at P63.35 against the greenback.