Peso breaks ₱63 for the first time ever, closes at record low of ₱63.06

The Philippine peso suffered its first-ever break below ₱63 against the US dollar, closing at a record low of ₱63.06 per dollar on Thursday. The peso opened the trading day at ₱62.83 and touched ₱63.15 per dollar, surpassing the previous intraday low of ₱62.925 set on September 15. It had opened at ₱62.83 and closed at ₱62.87, just three centavos shy of the previous record-low close of ₱62.90 on October 8.

The peso then dipped further to close at ₱63.06. The Bankers Association of the Philippines (BAP) reported the decline was driven by higher oil prices, as the Philippines imports nearly all its fuel from the Middle East. This increase in oil costs requires more dollars to pay for the fuel, putting demand for the greenback and pushing the peso down.

Investors also flocked to safe assets like the US dollar amid the conflict in the Middle East. The Bangko Sentral ng Pilipinas (BSP) has raised interest rates three times since April, but analysts say the measures have only provided limited support against external headwinds.