THE peso hit another record low on Monday, and the stock market plunged nearly 2 percent as the war in the Middle East continued and US President Donald Trump and Iran traded threats over the Strait of Hormuz.
The currency weakened by 20 centavos to P60.3 against the dollar, while the benchmark Philippine Stock Exchange index (PSEi) shed 119.44 points, or 1.99 percent, to a near four-month low of 5,899.16.
The broader All Shares also plunged, by 68.28 points, or 2.04 percent, to 3,276.59.
The peso opened at P60.15 — higher than the previous record low of P60.1 hit last Thursday — and traded between P60.146 and P60.37.
A trader said the peso weakened amid a strong dollar, higher oil widening the import bill and risk-off flows.
“The ‘60 handle’ looks more like a near-term overshoot than a new anchor — likely to linger while uncertainty is high, but not sticky,” the trader claimed.
“A pullback below 60 is still plausible once external pressures ease.”
Another trader, meanwhile, said the currency could remain weak amid uncertainty over the war in the Middle East.
“Exchange rates might move between P60.25 and P60.40.”
Trump on Saturday threatened to “obliterate” Iran’s power plants if it did not reopen the Strait of Hormuz, a key oil trade route, in 48 hours. Iran, in response, warned that it would strike Israel’s power plants and those supplying US bases in the Middle East.
Japhet Tantiangco, research manager at Philstocks Financial Inc., said the PSEi was pressured by the ongoing rhetoric and noted that Monday’s close was the lowest since Dec. 4, 2025's 5,887.58.
Regina Capital Development Corp. head of sales Luis Limlingan said that rising oil prices had heightened concerns over inflation and input costs.
"Cautious trading prevailed amid expectations of sustained price pressures and potential policy tightening," he said.
All sectoral indices ended lower, with mining and oil suffering the heaviest losses, dropping 8.71 percent.
Decliners outnumbered advancers 167 to 46.
