THE peso hit a new record low and the stock market also plunged nearly five percent as oil prices soared above $100 per barrel due to war in the Middle East.
The currency weakened by 50 centavos and closed at P59.50 to the dollar, surpassing the previous low of P59.46:$1 set on Jan. 15, 2026.
The benchmark Philippine Stock Market index (PSEi), meanwhile, plummeted 4.97 percent to 6,006.22, its lowest close since Dec. 19, 2025’s 5,920.97.
“The last time we saw a more than four-percent decline in the index was on April 7, 2025 ... due to (US President Donald) Trump announcing tariffs to multiple countries,” said Jarrod Tin, analyst at DragonFi Securities Inc.
A currency trader, meanwhile, said the Bangko Sentral ng Pilipinas (BSP) could be prompted to step in with the peso expected to test the P60:$1 psychological barrier.
The currency weakened to as much as P59.71 against the dollar during intraday trade and volume surged to P2.597 billion from P1.846 billion last Friday.
“Due to this sudden move in the peso from an external factor, any BSP intervention near the 60-level cannot be ruled out,” the trader added, noting that the Reserve Bank of India has been selling dollars to prop up a sliding rupee.
Juan Paolo Colet, managing director at China Bank Capital Corp., said investors were moving away from riskier assets as oil prices soared and geopolitical tensions escalated.
“Financial markets are now in full risk-off mode in the face of $100 oil and the prospect of a prolonged war in the Middle East,” he added.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the sharp rise in global oil prices and peso depreciation could drive inflation higher, which may push the BSP to reverse course and raise interest rates to keep inflation under control.
Central bank Governor Eli Remolona Jr. last week said that monetary authorities could consider raising interest rates if oil prices reached $100 per barrel and if the dollar continued to strengthen.
Brent crude prices hit $119 per barrel on Monday, the highest since July 2022, and the dollar also surged as demand for cash rose as the war in the Middle East entered a 10th day.
At the stock market, net value turnover reached P9.76 billion and foreign investors were net sellers with net outflows of P1.58 billion.
All sectoral indices ended in the red, with the conglomerates sector posting the biggest loss of 5.94 percent.
Decliners overwhelming advancers, 205 to 28, and all benchmark index members closed lower.
