Peso slides back to 60:$1 mark
The Philippine peso slid back to the 60-per-dollar level following the Marcos administration’s declaration of a state of national energy emergency amid the ongoing Middle East war.
The local currency closed at 60.10 against the greenback on Wednesday, weaker by 15 centavos from its previous finish of 59.95—when the peso had rebounded following the historic dip to 60.30 on March 23.
This level matched the close seen on March 19, which marked the first time that the peso breached the key psychological level of 60.
During the session, the peso fell as far as 60.133 before trimming some losses, though it remained stronger than the previous intraday low of 60.15.
Trading volume was lower but still heavy, rising to $1.7 billion from $2.69 billion previously.
Investor sentiment weakened after the Philippines became the first country in the world to declare a state of national energy emergency in response to the escalating Middle East war.
Safe haven
As such, investors remain jittery, seeking the safety of safe-haven assets such as the US dollar.
The Middle East war is now in its fourth week, further strengthening the greenback. US President Donald Trump said negotiations with Iran were under way, but the latter has since disputed this claim.
Economists expect the peso to hover around 60 per dollar by the end of 2026, citing the Philippines’ status as a net oil-importing economy.
Even so, President Ferdinand Marcos told Bloomberg News that it would be “futile” to use the country’s foreign reserves to defend the peso.
“We also recognize that there’s only so much you can do because the dollar’s going to move the way it does,” he said.
A weaker peso carries mixed consequences for the Philippines.
It boosts the domestic value of remittances sent home by millions of overseas workers and could make Filipino exports more competitive.
But the weakness also risks raising import costs and reigniting inflation. Prolonged depreciation could likewise inflate the peso value of foreign debt held by the government and private firms.
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