29.04.202605:53:10UTC+00Philippine Peso Hits New All-Time Low

The Philippine peso slid past 61 to the US dollar in late April, marking a new all-time low and highlighting intensifying pressure on the currency amid heightened global economic uncertainty stemming from the ongoing conflict in the Middle East. Persistent tensions have disrupted oil supply chains, posing a serious challenge for the Philippine economy, which is heavily dependent on crude oil imports from the region.

Since the conflict began, the peso has repeatedly touched record lows. The currency’s weakness heightens the risk of imported inflation and raises the peso cost of servicing foreign-currency debt. This comes at a time when price pressures are already elevated: headline inflation accelerated to 4.1% year-on-year in March, its highest rate since July 2024.

In response, the Bangko Sentral ng Pilipinas raised its policy rate by 25 basis points to 4.5% in mid-April, initiating its first monetary tightening cycle in more than two years.