Peso Hits Fresh Record Low Amid Oil Price Surge

The Philippine peso has hit a new record low against the US dollar due to rising oil prices. On Friday, it dropped by 0.2% to 61.84 per dollar, surpassing its previous all-time low of 61.75 set in late April.

The increase in crude prices, which has surged over 30% this month, is affecting currencies in Asia's oil-importing countries. In response, central banks in India and the Philippines have intervened in the foreign exchange markets to defend their respective currencies.

According to Jeff Ng, head of Asia macro strategy at Sumitomo Mitsui Banking Corp., there is a possibility that the peso could test the 62 level in the near term due to geopolitical risks, higher energy prices, and broad dollar strength. The peso has declined by almost 5% this year, making it one of Asia's worst-performing currencies.