Peso slumps to 60.69 with surge in oil imports

The peso has slumped to a new record low on Monday, closing at 60.69 against the US dollar, as rising oil imports and escalating geopolitical tensions continued to pressure the local currency.

The exchange rate weakened by 14 centavos or 0.2 percent from the previous close of 60.55, after touching an intraday record of 60.84. The peso has now declined for four straight trading days and in six of the past seven sessions.

Increased demand for dollars

The depreciation was partly driven by increased demand for dollars following the country’s recent purchases of crude oil and petroleum products, which are settled in foreign currency as authorities move to secure energy supplies.

At the same time, the Philippine Stock Exchange index (PSEi) fell for a third consecutive day, shedding 103.34 points or 1.7 percent to close at 5,869.49 — its lowest level in four months. Net foreign selling widened to $25.5 million, sharply higher than the previous session’s $1.6 million outflow.

Global developments also weighed on sentiment. Crude oil prices hovered near $101 per barrel, close to four-year highs, amid escalating conflict in the Middle East, including missile attacks and increased US military deployment in the region.

BSP not intervening in forex market

Governor Eli Remolona said the Bangko Sentral ng Pilipinas is not intervening heavily in the foreign exchange market, noting that the peso’s weakness is “not necessarily a bad thing” as it could help boost exports and narrow the current account deficit.

For his part, Michael Ricafort, chief economist of Rizal Commercial Banking Corp., said the peso may continue to face pressure, with the 60.84 level serving as an immediate resistance point following the latest record high.

He added that the 60.00 level remains a key psychological support, with stronger support seen at the 58.70 to 59.10 range, which could help stabilize the currency after its recent upward correction from 57.43 in February.

Record high gross international reserves

Providing some cushion is the country’s gross international reserves, which reached a record $113.3 billion as of end-February 2026 — equivalent to 7.5 months of import cover and still well above international adequacy standards.

Seasonal inflows from overseas Filipino remittances, particularly during the Holy Week period, may also help temper further depreciation.

Still, with oil prices elevated and global risks intensifying, the peso is expected to remain under pressure in the near term.