Peso sets 24th record low of 2026 at P62.68:$1 - GMA Network
The Philippine peso plunged for the second straight trading day on Friday, closing at its 24th record low this year, driven by movements in global oil prices and ongoing geopolitical concerns.
The local currency depreciated by 14.5 centavos to close at P62.68:$1 from Thursday’s finish of P62.5:$1, surpassing the previous record of P62.625:$1 hit on Tuesday, September 8.
“It’s still global oil prices, which again rose and topped $100 per barrel due to renewed US-Iran conflict and Saudi-Houthi clashes, both of which are weighing on Middle East oil supply,” Security Bank Corp. chief economist Angelo Taningco said in a mobile message.
A weaker peso could contribute to higher overall inflation, as Filipinos would have to pay more for imported petroleum, which would then drive up commodity prices. Inflation clocked in at 6.1% in August, bringing the year-to-date average to 5.2%, above the government’s 2.0% to 4.0% full-year target range.
Iran and the United States continue to clash in the Middle East, with Tehran announcing earlier this week that it launched an advanced missile at American warships, warning of potential “economic warfare.”
The Iran-supported Houthi militia also launched attacks on multiple cities in Saudi Arabia, suggesting the conflict may expand into a broader regional war.
West Texas Intermediate, the key US oil benchmark, rose above $100 per barrel on Thursday after Yemen’s Houthis captured the Red Sea port city of Mocha. Brent crude also rose over 6% past $107 a barrel, its highest level since May.
“Another factor is the global bond and equities selloff, which resulted in capital outflows from local equity and bond markets,” Taningco said.
The main Philippine Stock Exchange index (PSEi) dropped 37.42 points or 0.61% to 6,061.81 at the closing bell, while the broader All Shares index declined by 24.91 points or 0.74% to 3,358.40.
“The local bourse ended lower amid continued pressure from surging crude prices, with oil trading near $108 per barrel amid the US-Iran conflict. Elevated oil prices raised concerns about inflation and macroeconomic indicators, weighing on overall market sentiment,” Regina Capital Development Corp. head of sales Luis Limlingan said in a separate mobile message.
“Meanwhile, the weaker local currency further encouraged investors to reduce risk exposure, keeping market pressure in place,” he added.
Nearly all sectoral indices closed in the red — financials by -1.58%, industrial by 0.31%, holding firms by -1.15%, services by -0.14%, and mining and oil by -3.27%. The property index was the sole gainer, up slightly by 0.004%.
More than 1.552 billion shares, valued at P32.697 billion, changed hands. Decliners led advancers, 144 to 51, while 54 issues were unchanged. —AOL, GMA News
