The local bourse declined for the fifth straight trading day, slipping below the 5,900 level on Tuesday as the peso fell to a new record low of P61.30 per US dollar amid sustained uncertainty over the energy crisis.

The benchmark Philippine Stock Exchange Index (PSEi) dropped 0.58 percent to 5,866.79, as investors remained cautious amid heightened economic uncertainty stemming from the Middle East situation.

Since US President Donald Trump announced an extension of the ceasefire last Wednesday, 22 April, the PSEi has logged five consecutive daily losses. The Strait of Hormuz also remains under US blockade at press time, while both sides remain uneasy over the terms of a potential peace deal.

Hawkish signals from the Bangko Sentral ng Pilipinas (BSP) on further rate hikes to combat inflation—which the central bank projects could rise to 6.3 percent this year—have likewise dampened sentiment. The peso’s continued depreciation also weighed heavily on investor confidence.

Trading was relatively active, with value turnover at P6.92 billion, above the year-to-date average of P6.40 billion, as investors took profits, reinforcing a risk-averse stance. Foreign investors also posted net outflows of P878.07 million.

Sectoral performance was broadly negative: industrials led losses (-1.32%), while only mining and conglomerates posted marginal gains, supported by elevated commodity prices. Among blue chips, JG Summit Holdings led gainers, rising 2.19 percent to P27.95 per share.

Meanwhile, the local currency slid to a fresh record low of P61.30 per US dollar, breaching the P61 threshold for the first time as the dollar strengthened following the collapse of US–Iran peace talks.

Globally, the US dollar remained firm as investors flocked to safe-haven assets amid escalating geopolitical risks, particularly the ongoing Middle East conflict and disruptions to the Strait of Hormuz, which have kept crude prices elevated above $100 per barrel.

Tuesday’s record low marks the seventh time the peso has hit a historic weakness against the greenback since the conflict escalated at the beginning of last month. The peso had traded around the P57–P58 range prior to the US-backed invasion of Iran in early March.

Based on data from the Bankers Association of the Philippines, the peso had earlier reached intraday lows of P60.98 in the morning and P61.07 in the afternoon before settling at the new record low.

At a recent press conference following the policy rate hike, BSP Governor Eli M. Remolona Jr. reiterated the central bank’s largely hands-off approach to foreign exchange intervention.

“We don’t use policy rates to support the peso. We try to let the peso find its own level. We intervene only to smooth volatility and swings,” he said.

Remolona had earlier noted that the BSP intervened modestly in March, with part of the decline in the country’s gross international reserves attributed to currency stabilization efforts.

“But the market seems to know what it’s doing, if you look at how it has moved over the past several months. We mostly leave it alone,” he added.