The Philippine peso experienced a significant decline on Monday, reaching a new record low as market participants reacted to both global and domestic uncertainties. The peso dropped by 2.9 centavos, closing at P61.75 against the US dollar, surpassing the previous low of P61.721 set last Friday. Alongside the currency’s fall, the Philippine Stock Market index (PSEi) also saw a decrease, losing 35.25 points or 0.59 percent, settling at 5,941.52 by the end of the trading day.
Market analysts noted that the peso’s value was increasingly influenced by market sentiment rather than economic fundamentals. A trader highlighted that the dollar’s broad strength, combined with a heightened demand for safe assets and increased oil-related dollar demand, contributed to the peso’s depreciation. The trader emphasized that in the current market environment, positioning and momentum could amplify movements, especially in conditions of thin liquidity.
Emerging market currencies in Asia, such as the Indonesian rupiah and the Indian rupee, also faced challenges, hitting record lows similar to the peso. Renewed tensions in the Gulf region have driven oil prices and global yields upward, strengthening the dollar and exerting pressure on economies reliant on oil imports. The rupiah, noted as one of the region’s weakest currencies, fell by 1.16 percent to 17,665 per dollar, marking its largest intraday percentage loss since April 2025. Meanwhile, the rupee dropped to an unprecedented low of 96.303 per dollar, continuing its decline since the rise in oil prices following the Iran conflict in late February.
According to MUFG analyst Michael Wan, Asian emerging market currencies are enduring difficulties due to a robust dollar, with the peso and rupee particularly affected by escalating oil prices and yield-sensitive currencies like the rupiah facing additional domestic challenges. Japhet Tantiangco, from Philstocks Financial Inc., observed that concerns over the Middle East conflict resurfaced in light of recent threats by Trump against Iran, prompting a defensive stance among investors.
Investor activity remained tepid, with Regina Capital Development Corp.’s Luis Limlingan noting a lack of buying interest as market participants awaited clearer catalysts. The persistent rise in global crude oil prices and the peso’s ongoing weakness further dampened sentiment. Trading was sluggish, with net value turnover dropping to P3.85 billion, significantly below the average for the year, reflecting continued investor hesitation. Foreign funds stayed largely inactive, resulting in net outflows of P225.76 million. In terms of sector performance, only property stocks ended in positive territory, edging up by 0.19 percent, whereas mining and oil sectors led the declines with a 3.4-percent drop. Overall, market breadth was negative, with 117 declining stocks compared to 65 advancers, while 68 issues remained unchanged.