Peso Hits Record Low Near P62 Amid Middle East Tensions

The Philippine peso has hit a fresh intraday record low near P62 against the US dollar. The currency's decline was fueled by escalating tensions in the Middle East, which heightened inflation and interest rate concerns.

Data from the Bankers Association of the Philippines shows that the peso closed at P61.815 versus the greenback on Wednesday, down three centavos from its previous finish. This is the lowest close for the peso in over three weeks, since it hit a record-low of P61.847 on July 24.

The peso has depreciated by P2.995 or 4.85% year-to-date, from its P58.79-finish on December 29, 2025. The dollar exchange rose to $1.888 billion from $1.336 billion previously.

Analysts attribute the peso's decline to safe-haven demand due to the expired Memorandum of Understanding between the US and Iran. Reuters reported that US President Donald Trump stated no talks were taking place with Iran, contradicting Iran's assertion that the Strait of Hormuz remained shut to shipping.