The Philippine peso weakened toward the psychologically significant 60-per-dollar level, setting a new record low as surging energy prices weighed on the currency. The peso remains especially sensitive to increases in oil costs due to the country’s heavy dependence on imported fuel, with over 90% of its crude oil sourced from the Middle East. Crude prices hovered near $100 a barrel, extending their rally amid persistent tensions in the Iran conflict.
In response, Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. said the central bank had intervened in the foreign-exchange market to help stabilize the peso, though the measure did little to stem its decline. Even before the latest escalation in the Iran conflict, policymakers had already flagged the 60-per-dollar level as a critical threshold. Earlier this month, Remolona cautioned that persistently elevated oil prices could compel the central bank to consider raising interest rates.
