The Philippine peso slipped near its record low on Tuesday as the escalating Middle East conflict lifted global oil prices, reviving inflation concerns and strengthening demand for the U.S. dollar.
The currency fell 5.9 centavos to close at 61.745 per dollar, marking its weakest finish in nearly two months and matching a level last recorded on June 1.
Trading opened slightly weaker at 61.69, reached a high of 61.68, and touched an intraday low of 61.75—an all‑time low previously reached on June 4 and last closed on May 19.
Dollar purchases rose to $752.5 million, up from $670.5 million in the prior session.
Recent attacks in the Middle East pushed crude oil to $88 per barrel, renewing fears of higher inflation and potential interest‑rate hikes, which weighed on the peso.
The surge in oil prices spurred safe‑haven demand for the dollar, according to a chief economist at a major commercial bank.
Analysts expect the peso to remain under pressure, with one forecasting a range of 61.50‑62 and another projecting movement between 61.60‑61.80 against the dollar.
The dollar edged lower as markets balanced Middle East tensions with softer U.S. inflation data released the previous week.
The euro gained 0.09% to 1.1424 dollars, while the yen slipped 0.09% to 162.63 per dollar.
Uncertainty over the conflict’s trajectory keeps investors cautious, limiting decisive bets on the dollar.
Diplomatic efforts continue, with reports that a cease‑fire proposal is being considered by the parties involved.
Market focus now centers on the Strait of Hormuz; the speed at which shipping normalizes will influence global inflation trends and oil market stability.
Brent crude futures fell 1.1% on Tuesday after rising nearly 21% over the month.
The U.S. dollar index slipped 0.05% to 100.9 after reaching its highest level since mid‑July.
