The local currency has taken another hit.
On Monday, March 30, as foreign exchange trading resumed after the weekend, the Philippine peso closed at another all-time low rate of PHP 60.69 to USD 1.
This is 14 centavos lower for the peso than its previous lowest level at PHP 60.55 last Friday, March 27. Notably, the intra-day lowest spot even saw the peso hitting the PHP60.84 mark, as per the Bankers Association of the Philippines (BAP).
This development comes just two days after the ongoing regional conflict in the Middle East, driven by the attack of the United States and Israel on Iran last February 28, hit the one-month mark.
Since then, there has been a surge in oil prices globally, mainly driven both by the blockade in the Strait of Hormuz and the attacks on several oil facilities in the region by both camps.
As a result, prices of other products have already started going up, with the country’s monetary board, the Bangko Sentral ng Pilipinas (BSP), said that it is expecting in the near term, the upside risks to inflation as largely supply-driven, for which it has limited effectiveness.
“At the same time, the BSP sees continued weak economic growth in 2026,” noting that the inflation rate for the year might reach the 4 percent mark.
“Looking ahead, mounting risks to inflation will require sustained vigilance. Monetary policy will focus on addressing likely second-round effects that may arise. The Monetary Board will act as needed in pursuit of the BSP’s primary mandate to maintain price stability,” it added.