Peso Weakens Further to 59.87 vs $1 | INQToday
Why It Matters
A weaker peso raises import bills and inflation risk, compelling the BSP to consider tighter policy and influencing investors’ currency allocations.
Key Takeaways
- •Peso hits record low of 59.87 per dollar.
- •Central bank intervenes to stop peso sliding toward 60.
- •Oil prices above $100 intensify Philippines' net import costs.
- •Middle East conflict disrupts Strait of Hormuz shipping routes.
- •Investors flee to US dollar as safe‑haven amid volatility.
Summary
The Philippine peso slipped to a fresh record low of 59.87 per U.S. dollar on March 16, prompting the Bangko Sentral ng Pilipinas (BSP) to step in as the currency neared the psychologically significant 60‑peso barrier.
The peso closed 13.5 centavos weaker than its prior trough of 59.735, after an intraday dip to 59.95. The slide coincided with crude oil breaching $100 a barrel, as the ongoing Middle East conflict chokes the Strait of Hormuz and keeps global energy prices elevated, further straining the Philippines’ net‑oil‑importing balance sheet.
According to market reports, the BSP’s intervention helped halt the decline before the close, while investors shifted toward the U.S. dollar, the traditional safe‑haven amid heightened geopolitical risk.
Persistently high oil costs and a weaker peso could pressure inflation and force the central bank to tighten monetary policy or conduct additional market operations, affecting borrowing costs, corporate earnings, and foreign‑exchange exposure for businesses and consumers alike.
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