Peso Hits New Low as Middle East Tensions Escalate Oil Prices

The Philippine peso has hit a new record low against the US dollar, driven by higher oil prices and Middle East tensions. On Wednesday, the peso opened at 62.4 to the dollar before sliding further to an intraday low of 62.58 during morning trading, based on data from the Bankers Association of the Philippines.

The move came as renewed hostilities in the Middle East pushed oil prices higher, with Brent crude rising almost 1 percent on Wednesday. This increase in oil prices and the strengthening US dollar have weighed heavily on the peso, contributing to its decline.

According to MUFG Bank Ltd., the Philippine peso remains Asia's 'weakest link' despite the central bank's recent rate hike, as policymakers balance inflation control with weak economic growth.