The Philippine peso shed 23.8 centavos to a record-low P61.888 per US dollar on Thursday, marking the thirteenth time the local currency has slumped to a record low since the onset of the Middle East conflict in March.

Renewed dollar strength and geopolitical uncertainty outweighed relief from falling oil prices and renewed Iran-Oman discussions on managing traffic through the Strait of Hormuz. The peso fell about 0.39 percent from Wednesday’s P61.650 close.

Record low

The latest record low surpassed the previous record of P61.647 set on 24 July. The local currency briefly touched a new intraday record low of P61.995, edging closer to the P62 level amid collapsing peace talks between the US and Iran.

Meanwhile, the Philippine Stock Exchange Index (PSEi) fell sharply, dropping 2.16 percent to 6,004.58 as investors turned increasingly defensive ahead of the central bank’s decision.

Trading value reached P7.24 billion, while foreign investors recorded P2.32 billion in net selling.

The Bangko Sentral ng Pilipinas eventually announced it had raised its key policy rate to 5.00 percent, its third consecutive hike, as it sought to contain inflationary pressures amid elevated energy and supply-side risks.

However, the widely anticipated move failed to provide meaningful support for the peso as investors remained focused on global risk factors and the outlook for US interest rates.

All sectors finished lower, with services posting the steepest decline at 3.81 percent. Ayala Land, Inc. was the lone index gainer, rising 1.95 percent to P15.50, while PLDT, Inc. was the biggest laggard, falling 4.30 percent to P1,135.