THE peso hit a new record low on Monday and the stock market also fell with investors and traders said to have become more sensitive to global and domestic uncertainties.
The currency weakened by 2.9 centavos to P61.75 against the dollar from Friday’s previous all-time low of P61.721, while the benchmark Philippine Stock Market index (PSEi) shed 35.25 points, or 0.59 percent, to close at 5,941.52.
A trader said the peso was beginning to trade less on fundamentals and more on sentiment.
“The dollar remains broadly strong, but today’s move also reflects demand for safety, higher oil-related dollar demand, and a market that is becoming more sensitive to domestic uncertainty,” the trader said.
“At these levels, positioning and momentum also matter, which can exaggerate moves in thin liquidity,” the trader added.
The near-term bias was said to remain tilted toward a weaker peso, with P62:$1 now psychologically within reach, “though sharp swings in both directions are likely.”
The peso joined the Indonesian rupiah and the Indian rupee in slumping to record lows as renewed Gulf tensions pushed oil prices and global yields higher, strengthening the dollar and pressuring oil-importing economies.
The rupiah, one of the region’s worst-performing currencies, slumped 1.16 percent to 17,665 per dollar, its biggest intraday percentage loss since April 2025.
The rupee, meanwhile, hit an all-time low of 96.303 per dollar, extending a slide that has gathered pace since the Iran conflict pushed oil prices higher in late February.
MUFG analyst Michael Wan said Asian emerging market currencies were bearing the brunt of a stronger dollar, with the rupee and the peso facing a double hit from higher oil prices and yield‑sensitive units like the rupiah also pressured by domestic headwinds.
Japhet Tantiangco, research manager at Philstocks Financial Inc., said worries surrounding the Middle East war again took center stage following Trump’s latest threats toward Iran, causing investors to remain defensive.
Regina Capital Development Corp. head of sales Luis Limlingan said buying interest remained muted as investors waited for clearer market catalysts. He added that rising global crude oil prices and the peso’s continued weakness further weighed on sentiment.
Trading activity remained sluggish, with net value turnover falling to P3.85 billion, well below the year-to-date average, indicating continued hesitation among investors.
Foreign funds likewise stayed on the sidelines, with net outflows reaching P225.76 million.
Only property stocks managed to finish in positive territory, inching up 0.19 percent, while mining and oil led the decline with a 3.4-percent drop.
Market breadth remained negative, with 117 decliners against 65 advancers, while 68 issues were unchanged.
