The Philippine peso sank to a new record low of P60.55 per US dollar on Friday afternoon as the crisis in the Middle East continued to weigh on the currency and pressure the local equity market.

Based on Bankers Association of the Philippines (BAP) data, the peso weakened from Thursday’s close of P60.23 and briefly hit an intraday low of P60.57 per dollar, nearing the P61 level. Friday’s level surpassed the previous record low of P60.30 set last Monday, 23 March, marking the fifth record breach since the conflict escalated earlier this month.

Over the past 24 hours, Iran’s continued resistance to negotiations and persistent uncertainty surrounding the Strait of Hormuz have kept a risk premium embedded in oil markets, sustaining upward pressure on crude prices. For the Philippines, a net oil importer, this translates into higher import costs and increased dollar demand, further weighing on the peso.

US President Donald Trump also said he would pause attacks on Iran’s energy facilities for 10 days at Tehran’s request, adding that negotiations were “going very well.” However, an Iranian official dismissed a US proposal to end the conflict as “one-sided and unfair,” according to reports.

At the same time, the Bangko Sentral ng Pilipinas’ (BSP) upward revision of its 2026 inflation forecast reinforced expectations that domestic price pressures will remain elevated, potentially limiting policy flexibility and adding another layer of concern for currency investors.

The BSP said it now projects headline inflation at 5.1 percent for the year — above the central bank’s target range of 2 percent to 4 percent amid the ongoing conflict. Despite the higher inflation outlook, the Monetary Board decided to keep the BSP’s key policy rate at 4.25 percent.

BSP Governor Eli M. Remolona Jr. said the peso’s sustained weakness could help narrow the Philippines’ current account deficit and support export competitiveness.

“As you know, the peso has remained in the neighborhood at P60 to the dollar. So far, it hasn’t merited heavy intervention,” he said at a Thursday press conference announcing the hold on rates.

“We understand the weakness of the peso is not necessarily a bad thing. The peso, where it's going, seems to help with our current account deficit, seems to help with our exports, so it's not necessarily a bad thing,” added Remolona.

Meanwhile, the local bourse ended the week below the 6,000 level, with the Philippine Stock Exchange index (PSEi) closing Friday at 5,972.83, down 0.19 percent from the previous session, as the market extended its decline amid rising inflation concerns and persistent geopolitical uncertainty. Investor sentiment remained fragile as the duration of the US/Israel–Iran conflict remained unclear.

Adding to concerns, the BSP, in its off-cycle policy meeting, raised its 2026 inflation forecast to 4.2 percent, reinforcing expectations of sustained price pressures.

Trading was muted, with net value turnover at P4.94 billion, while foreign investors remained net sellers, posting P95.54 million in outflows.

Sector performance was mixed, with Holding Firms leading gains, up 0.68 percent, while Mining & Oil lagged, down 0.72 percent. Market breadth was nearly even, with 92 advancers against 91 decliners. JG Summit Holdings (JGS) led the index, rising 4.20 percent to P27.30, while DigiPlus (PLUS) declined 3.29 percent to P16.46, making it the worst performer.

Robinsons Retail Holdings Inc. (RRHI), the Gokongwei-led retail firm, also announced plans to delist from the local bourse, signaling a major shift in how the company will operate and engage with public investors.

The company disclosed on Friday that JE Holdings Inc. plans to launch a tender offer to acquire all outstanding shares not already owned by the delisting proponents at P48.30 per share. The move remains subject to several conditions, including approval from the Philippine Competition Commission, securing at least 95 percent ownership by the proponents, and obtaining the necessary corporate approvals from RRHI’s board and shareholders in accordance with PSE rules.