The Philippine peso slipped against the U.S. dollar on Thursday, closing at 61.56 per dollar after a 15‑centavo decline from the previous day’s 61.41 level.
Throughout the session, the currency hovered near 61.41, reaching a low of 61.58 and a high of 61.345. Dollar sales fell to 1.374 billion from 1.618 billion in the prior trading day.
Experts linked the peso’s weakness to a sharp rise in oil prices, which followed renewed U.S. and Iranian hostilities in the Middle East.
U.S. forces launched strikes against Iranian targets after Tehran fired ballistic missiles at U.S. assets. The same day, U.S. and Saudi forces struck Iranian‑aligned groups in Iraq, marking a joint operation not previously undertaken by Riyadh.
A U.S.‑owned gas storage tanker in Egypt’s Damietta port suffered a drone strike, adding to regional tensions.
These escalations risk drawing additional Middle Eastern countries into conflict, especially after the Houthi movement in Yemen imposed a naval blockade on Saudi shipping.
The broader conflict began in February with a U.S. and Israel bombing campaign in Iran, later expanding to the Strait of Hormuz—a critical conduit for global oil and liquefied natural gas.
Brent crude futures surged over 8% to above $90 a barrel, reversing a prior decline that had followed a pause in U.S. strikes.
Meanwhile, the Federal Reserve maintained its policy rate, and market speculation indicates a 34.9% probability of holding rates at the next meeting, up from 24% prior.
June trade data revealed a widened deficit of $4.94 billion, up 12.3% from the same month last year, though it narrowed from a $6.1 billion gap in May. The deficit represents a long‑standing trend, with the last surplus occurring in May 2015.
Analysts anticipate the peso to trade between 61.40 and 61.75 per dollar on Friday, while other forecasts project a narrower range of 61.45 to 61.65.
