The Philippine peso is approaching a record low against the US dollar as rising global oil prices increase pressure on the country’s import costs.
The currency traded around 61.59 to 61.72 peso per US dollar, nearing its weakest level on record, as West Texas Intermediate (WTI) crude oil futures climbed 4.69% to US$74.76 per barrel.
As a net oil importer, the Philippines faces higher costs when crude prices rise, adding pressure on the peso as investors factor in the impact of a larger energy import bill.
The peso has weakened from 59.22 peso per US dollar in December 2025 to above 61 peso in April 2026, with recent movements also linked to geopolitical uncertainty including the ongoing Iran conflict, which has contributed to volatility across energy markets.
Market participants have interpreted the peso’s depreciation as reflecting expectations of further increases in oil prices, which could affect inflation and external trade conditions.
The Bangko Sentral ng Pilipinas (BSP) has so far focused on managing volatility caused by inflation pressures rather than targeting a specific exchange rate level.
The currency movement comes as global markets remain cautious over developments in West Asia, with concerns surrounding energy supply disruptions continuing to influence oil prices and emerging market currencies.
