Peso Plunges Near Record Low as Middle East Tensions Bite

The Philippine peso hit a new record low on Wednesday, nearing the 62:$1 mark due to lingering tensions in the Middle East and uncertainty over US interest rates.

The local currency weakened to an intraday low of 61.995 before paring losses to close at 61.815, down 3 centavos from its previous finish.

The prolonged conflict in the Middle East has supported demand for the US dollar, while investors are positioning ahead of the release of US Federal Reserve minutes for clues on interest rates.

'The peso reached near the 62-level on safe-haven demand after the 60-day [memorandum of understanding] between US and Iran already expired, which triggered renewed market concerns,' a trader said.