Philippine Peso Hits Record Low for 24th Time in 2026 Amid Soaring Oil Prices, Geopolitical Tensions

The Philippine peso plunged for the second straight trading day on Friday, closing at its 24th record low this year at P62.68:$1. This surpasses the previous record of P62.625:$1 hit on Tuesday, September 8. Angelo Taningco, chief economist at Security Bank Corp., attributed the peso's weakness primarily to the renewed US-Iran conflict and Saudi-Houthi clashes, which have pushed global oil prices above $100 per barrel due to concerns over Middle East oil supply. "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," Taningco said in a mobile message. A weaker peso can contribute to higher overall inflation as Filipinos would have to pay more for imported petroleum, subsequently driving up commodity prices. Inflation stood at 6.1% in August, bringing the year-to-date average to 5.2%, exceeding the government's full-year target range of 2.0% to 4.0%. In the Middle East, tensions between Iran and the United States continue to simmer, with Tehran announcing earlier this week that it launched an advanced missile at American warships, warning of potential "economic warfare." The Iran-backed Houthi militia's attacks on multiple cities in Saudi Arabia also raise concerns about a broader regional war. On the oil market, West Texas Intermediate (WTI), 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 climbed 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 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