Philippine Peso Holds at Record Low Amid Crude Oil Price Surge

The Philippine peso remained at its weakest level against the US dollar on Thursday, closing at P61.75:$1, the same level as Wednesday’s finish, matching the record low last seen in May. Rizal Commercial Banking Corp. chief economist Michael Ricafort attributed the peso’s stagnation at its weakest level to renewed global crude oil price volatility. He noted that Houthi attacks on two Saudi Arabian tankers in the Red Sea could escalate the Middle East conflict, potentially leading to larger global oil supply disruptions. This development pushed crude oil prices to 1.5-month highs, or since June 8, 2026. However, Ricafort pointed out offsetting factors for the peso. These include caution from the Bangko Sentral ng Pilipinas (BSP) to banks against using foreign exchange derivatives transactions to profit from currency volatility. Recent signals from Malacañang also reinforce the BSP's primary mandate to stabilize the peso and manage excessive volatility in the foreign exchange market. The peso opened at P61.74:$1, reached an intraday low of P61.75:$1, and a high of P61.72:$1. For the Philippine economy, fluctuations in crude oil prices directly impact import costs, potentially leading to increased inflationary pressures. For an economy heavily reliant on energy imports, the simultaneous depreciation of the peso and rise in oil prices raises concerns about increased burdens on households and businesses.