Philippines Peso plunges to a record low of 62.71 per US dollar on Friday, driven by Iran war fallout, rising oil prices, and domestic economic challenges.
The Philippines peso hit an all-time low of 62.71 to the US dollar on Friday, continuing its downward trajectory since the start of the year, having lost about 6% of its value against the US dollar since January 1. The currency's depreciation is attributed to the fallout from the Iran war, which disrupted oil supplies from the Strait of Hormuz and led to rising oil prices. This has forced Philippine importers to convert more pesos for US dollars to purchase crude, driving down the local currency's value. Additionally, rising US Treasury bond yields have encouraged international investors to shift from developing economies' currencies to safer dollar-denominated assets. Analysts note that the peso's weakness largely stems from the Philippines' large twin (fiscal and current account) deficits and elevated inflation, which stood at 6.1% in August, well above the central bank's 3% target. On
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