Peso Bumagsak sa All-Time Low na ₱59.735 vs Dollar — Middle East Crisis Ang Dahilan

The Philippine peso just hit a fresh historic low, closing at ₱59.735 against the US dollar on Friday — breaking its own record from just five days ago. That's a 35-centavo drop in a single day, and the second time in one week that the peso set a new all-time low. Hindi na talaga mabiro ang sitwasyon.

The peso opened trading at ₱59.55 per dollar and slid to an intraday low of ₱59.75 before closing near the bottom. The previous record low of ₱59.50:$1 was set only last Monday, March 9 — meaning the peso has fallen off a cliff twice within the same week. Global crude oil prices surging to their highest levels in over three and a half years are the main culprit.

According to Rizal Commercial Banking Corp. chief economist Michael Ricafort, the peso's freefall is directly linked to the Middle East conflict disrupting global oil supply chains. With over 90% of the Philippines' crude imports coming from the Middle East, the country is extremely vulnerable to any oil shock. Higher crude prices mean higher inflation and slower growth — a painful combo.

BSP Governor Eli Remolona Jr. has signaled that the central bank is actively intervening in the forex market, assuring the public that the peso is unlikely to breach the ₱60 mark anytime soon. 'The BSP has no deliberate policy to target a level for the peso, but it worries when the depreciation is sharp,' Remolona said.

Ricafort projects the dollar-peso rate could range between 59.50 and 59.80 levels next week. For ordinary Filipinos, this means expect pricier goods — from gas to groceries — as the weaker peso makes imports more expensive. OFW remittances, on the bright side, convert to more pesos, pero that's cold comfort when everything else is getting more expensive.

Source: GMA News Online