The Philippine peso is currently on a downward trajectory, marked by its longest losing streak in over a year, largely influenced by rising global oil prices. Recently, the currency has weakened against the US dollar, trading at 56 PHP per USD, reflecting six consecutive days of decline, a trend not witnessed since April 2022. Analysts from Malayan Banking Bhd attribute this pressure mainly to higher oil prices, exacerbated by geopolitical tensions in the Middle East, particularly the ongoing Israel-Iran conflict.
Given that the Philippines imports almost all its oil, the nation's economy faces significant vulnerabilities related to fluctuating energy costs. As a result, the peso has dropped to 0.017509 against the US dollar, which is 1.2% below its three-month average of 0.017721. This pair has traded within a relatively stable range of 5.0%, between 0.017211 and 0.018069.
The sentiment surrounding the euro is similarly cautious, with the PHP trading at 0.014999, 2.5% below its three-month average of 0.015383. The volatility has been noticeable, with fluctuations occurring within an 8.5% range from 0.014881 to 0.016142.
The British pound has also seen the peso underperform, reaching a 14-day low of 0.013017. This rate is 1.0% lower compared to its three-month average of 0.013152, managing to trade within a stable range of 5.8% from 0.012867 to 0.013615.
In the case of the Japanese yen, the PHP is trading at 2.5741, slightly below its three-month average and exhibiting a stable range of 4.6% between 2.5395 and 2.6557.
Market experts note that the ongoing dynamics in the Middle East will continue to influence oil prices and, in turn, the peso's stability. The uncertain outlook may require close monitoring for individuals and businesses engaged in international transactions as currency rates evolve with these global developments.
