The local currency slid to another record low against the US dollar on Thursday even as the Philippine Stock Exchange Index (PSEi) surged back above the 6,000 level, shrugging off intensifying domestic and international political noise.

Data from the Bankers Association of the Philippines (BAP) showed the peso weakening further to a new record close of P61.64 per US dollar, depreciating from Wednesday’s P61.38 finish — the ninth time the currency has hit record levels of weakness against the greenback since the global oil shortage began.

Stronger demand for dollars

The sharp depreciation reflected stronger demand for dollars from importers and investors seeking protection from rising volatility, particularly as fuel costs continued to climb amid prolonged tensions in the Middle East.

Analysts said the peso’s weakness was driven largely by surging oil prices and sustained hedging activity tied to the country’s heavy dependence on imported fuel. 

Wednesday evening’s Senate siege, as well as Vice President Sara Duterte’s impending impeachment proceedings in the Senate, also contributed to broader risk-off sentiment.

PSEi rebounds

Meanwhile, the PSEi rebounded on Thursday, climbing 69.25 points or 1.15 percent to 6,015.03, snapping a two-day losing streak as investors hunted for bargains following recent market weakness.

The local bourse brushed aside the latest bout of political turmoil — including the Senate standoff — to reclaim the 6,000 level as investors took advantage of cheaper valuations after the market’s two-day slump. 

However, broader domestic political risks, including Senator Ronald dela Rosa’s possible arrest and Duterte’s impeachment proceedings, continue to pose risks to market sentiment moving forward.

Political instability weighs 

on financial markets

Political instability has previously weighed heavily on financial markets. On 14 November 2025, renewed attention on the Senate’s revived probe into the “floodgate” corruption scandal, combined with a surprise video exposé from former congressman Zaldy Co, dragged the PSEi down 2.49 percent to 5,584.35 — levels last seen near the height of the Covid-19 pandemic in May 2020 — highlighting the market’s sensitivity to political developments.