| PDM Graphics
MANILA — The Philippine peso weakened to a new record low against the U.S. dollar on March 12, closing at ₱59.456:$1, according to Trading Economics data. The slide marks the lowest level since the currency hit ₱62.86:$1 in January, its all‑time weakest performance.
The peso’s decline comes amid rising global oil prices and persistent geopolitical tensions, both of which have pressured emerging‑market currencies. The Bangko Sentral ng Pilipinas (BSP) said it is monitoring volatility but expects inflation to remain manageable.
Record Low Follows Weeks of Steady Weakening
Data from Exchange‑Rates.org show that the peso’s value has steadily eroded since February 1, when the PHP/USD rate hovered near its monthly high of 1 PHP = 0.01738 USD on February 25. By March 12, the peso had fallen to its lowest point of the year, equivalent to 1 PHP = 0.01679 USD.
This means the peso has weakened by over 3% in just six weeks, reflecting both domestic and global pressures. Trading Economics noted that the currency has dropped by 2.72% over the past month and by 3.67% over the past year.
BSP: Oil Prices, Global Tensions Driving Pressure
The BSP attributed the peso’s weakness partly to surging oil prices, which crossed $100 per barrel for the first time since 2022. As a major oil‑importing nation, the Philippines is highly sensitive to global energy shocks.
BSP Governor Eli Remolona Jr. warned that “escalating tensions could create economic headwinds, affecting both overseas remittances and inflation,” according to Trading Economics’ news summary.
Remolona added that the central bank stands ready to use its tools to maintain price stability, though no emergency measures have been announced.
Market Analysts Expect Continued Volatility
Analysts say the peso’s trajectory will depend heavily on global risk sentiment, U.S. Federal Reserve policy, and regional geopolitical developments. Trading Economics’ models forecast the peso to trade at ₱59.08:$1 by the end of the quarter and strengthen slightly to ₱58.04:$1 within 12 months.
Despite the record low, the peso’s decline has been gradual rather than abrupt, suggesting markets have priced in much of the external pressure.
Government Urges Calm as Monitoring Continues
Economic managers urged the public not to panic, noting that the peso’s movement remains within expected ranges given global conditions. The Department of Finance said it is coordinating with the BSP to ensure liquidity and stability in the financial system.
For now, the peso’s record low underscores the Philippines’ vulnerability to global shocks — and the delicate balancing act facing policymakers in the months ahead.