By Aaron Michael C. Sy, A reporter
The peso fell to a new record low against the US dollar on Monday as global oil prices remained stable dynamic among growing threats between the US and Iran.
The local unit weakened by 20 centavos to close at P60.30 against the greenback from its close of P60.10 on Thursday â its previous record low and the first time it broke the P60-per-dollar level, data from the Bankers Association of the Philippines showed.
Year to date, the peso has depreciated by P1.51 or 2.5041% from P58.790 to close on Dec. 29, 2025.
The peso opened Monday’s trading session weaker at P60.15 per dollar, while its daily best was at P60.146.
Its weakest showing was at P60.37 against the greenback. The lowest level the peso ever touched was P60.40 on March 19.
Dollars traded fell to $1.652 billion from $2.437 billion on Thursday.
“The peso fell sharply after US President Donald J. Trump stepped up his threats against Iran over the weekend,” the first trader said in an email.
The dollar-peso closed at record lows on Monday after Mr. Trump has pushed oil prices back above $100 a barrel, a second trader said by phone.
Reuters reported that Iran on Sunday said it would strike the energy and water systems of its Gulf neighbors if Mr. Trump followed up by threatening to strike Iran’s electricity grid within 48 hours, extinguishing any hope of a quick end to the war, now in its fourth week.
Mr. Trump has warned Iran that it has two days to fully open the vital Strait of Hormuz, effectively closed to most ships with little hope of naval protection, by the deadline.production at 2344 GMT on Monday.
“The dollar-peso exchange rate closed at a new record high following Trump’s threat of a 48-hour deadline for Iran to reopen the Strait of Hormuz; while Iran has threatened to completely close the Strait of Hormuz if attacked,” said Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort in a Viber message.
Higher global crude oil prices on Monday also brought back fears of faster inflation, higher borrowing costs, and slower economic growth, he added.
Department of Economy, Planning, and Development Secretary Arsenio M. Balisacan earlier said inflation may exceed 7% and economic growth may drop 0.3 percent this year if the oil price shock continues.
Finance Secretary and Monetary Board Member Frederick D. Go said last week that the prolonged increase in oil prices due to the war in the Middle East may prompt the Monetary Board to increase borrowing costs early next month.
BSP Governor Eli M. Remolona, ââJr. previously he said they may be forced to raise prices if oil prices reach $100 per barrel as that could bring inflation past 4% or at the end of the target range.
The Monetary Board will hold its next rate-setting meeting on April 23. If possible, this would be the BSP’s first rate cut in two years or since October 2023.
On Tuesday, a leading trader said the peso could remain under pressure as the Middle East war escalates.
The first trader sees the peso moving between P60.25 and P60.40 per dollar on Tuesday, while the second trader expects it to range from P60.10 to P60.50.
Mr. Ricafort expects the peso to remain pegged at P60.10 to P60.40. – with Reuters
