Peso hits fresh record-low 61.847 to US dollar

The peso sank to a new record low of 61.847 to the US dollar yesterday as escalating tensions between the United States and Iran drove up crude oil prices, stoking fresh concerns over imported inflation. Data from the Bankers Association of the Philippines showed the peso closed at 61.847 per dollar, weakening by 9.7 centavos from Thursday’s finish of 61.75. The local currency opened at 61.80 and traded within a narrow range of 61.78 to 61.85 during the session, with the day’s high marking its weakest intraday level on record. Trading volume, however, declined by 36.7 percent to $969.38 million from $1.53 billion in the previous session. The latest close surpassed the previous record low of 61.75, which the peso matched on Wednesday and had previously recorded on May 19. Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., said the peso remained under pressure as elevated crude oil prices and renewed geopolitical tensions continued to support the dollar. He expects the peso to trade between the 61.70 to 62 per dollar range in the near term. Meanwhile, a trader said the peso’s weakness was exacerbated by rising demand for dollars as higher oil prices increased the cost of energy imports. “Oil prices have been on an upward trajectory after peace talks bogged down. Peso tracked oil higher given the likely increase in dollar demand to cover a larger energy import bill,” the trader said. The trader also said renewed risk aversion strengthened the greenback after US President Donald Trump revived tariff threats against trading partners, pushing the dollar index to 101.3. RCBC chief economist Michael Ricafort said the peso remained under pressure as higher oil prices pushed markets to expect a more hawkish US Federal Reserve. He noted that Fed fund futures have fully priced in a 25-basis-point rate hike in September and another by January 2027, while the benchmark 10-year US Treasury yield climbed to 4.7 percent, its highest level since January 2025, boosting the appeal of dollar-denominated assets.