The Philippine peso slumped to a new record low against the US dollar on Friday as escalating tensions in the Middle East fueled concerns over rising oil prices and drove investors toward the greenback.
The local currency finished at 60.55 per dollar, weakening 32 centavos from its 60.23 finish on Thursday, according to data from the Bankers Association of the Philippines. The peso opened at 60.33 before hitting an intraday low of 60.57.
Reyes Tacandong & Co. senior adviser Jonathan Ravelas said the depreciation reflects markets pricing in energy-related risks.
“The peso weakened to P60.55 as markets begin to price in oil-related risks, reinforcing near-term dollar demand. Trading remains constraint-driven, with flows reflecting caution rather than panic,” Ravelas said.
The analyst said the currency is expected to trade between 60.25 and 60.75 against the greenback as long as uncertainty surrounding energy persists.
The volatility in the currency market spilled over into equities, with the benchmark Philippine Stock Exchange index slipping 11.37 points, or 0.19 percent, to close at 5,972.83. The broader all-shares index was nearly flat at 3,335.86.
Regina Capital Development Corp. head of sales Luis Limlingan said the lack of de-escalation in geopolitical conflicts and the sliding peso weighed heavily on investor sentiment.
“Risk appetite remained subdued, leading to selective buying and generally cautious trading activity,” Limlingan said.
Trading remained thin with value turnover at P4.9 billion, as investors stayed on the sidelines awaiting clearer signals. Foreign investors remained net sellers with outflows totaling P95.54 million.
Market sectors ended mixed, with mining and oil rising 0.72 percent and holding firms gaining 0.68 percent. Financials dropped 0.55 percent, while services and industrial sectors declined 0.49 percent and 0.13 percent, respectively.
JG Summit Holdings Inc. led the index gainers, rising 4.2 percent to P27.30. DigiPlus Interactive Corp. was the worst performer, falling 3.29 percent to P16.46.
