The Philippine peso weakened to about 61.84 per US dollar in late July, edging closer to a new record low as surging oil prices and broad-based US dollar strength weighed on the currency. Crude prices have climbed more than 30% this month, as the escalating US–Iran conflict spilled over into other key shipping routes, amplifying fears of more severe disruptions to global energy supplies. This has intensified pressure on oil-importing economies such as the Philippines, stoking concerns over imported inflation and the country’s trade balance.
In response, the Bangko Sentral ng Pilipinas intervened in the foreign exchange market this week to help stabilize the peso, while the Marcos administration voiced confidence that the central bank would step in more decisively if necessary. Fitch Group’s BMI Research expects the peso to trade in the 61–63 per US dollar range this year, positioning it among Asia’s weakest-performing currencies. The peso has already lost nearly 5% against the US dollar so far this year.
