MANILA, Philippines — The Philippine peso showed a slight recovery on Tuesday, March 24, 2026, closing at ₱59.95 per US dollar. This follows two consecutive days of historic lows where the local currency breached the psychological ₱60 threshold due to escalating geopolitical tensions in the Middle East.
- Closing Rate: ₱59.95 (a 35-centavo improvement from Monday’s record low of ₱60.30).
- Intraday Low: The currency still faced significant pressure, hitting a low of ₱60.15 during the day’s trading.
- Context: The recovery was partly attributed to speculative market reactions following reports that US President Donald Trump had postponed planned attacks on Iranian power plants, though the stability remains fragile as Iran dismissed those reports as “fake news.”
- Net Oil Importer Status: The Philippines is heavily dependent on imported fuel. As the Middle East conflict drives global oil prices toward $150 per barrel, the demand for US dollars—the primary currency for oil trades—surges, putting downward pressure on the peso.
- Safe-Haven Demand: Jittery investors are moving capital out of emerging markets and into “safe-haven” assets like the US dollar and gold to mitigate risks associated with a prolonged war.
- Inflationary Pressures: The weak peso exacerbates domestic inflation, as the cost of imported goods, raw materials, and energy rises, further straining the country’s trade deficit.
Analysts expect the peso to remain under pressure for the remainder of 2026. Current projections suggest the currency will likely hover around the ₱60-to-₱1 mark if the regional conflict does not reach a definitive resolution.
The Bangko Sentral ng Pilipinas (BSP) is expected to continue monitoring the situation closely, with some market participants anticipating potential interest rate hikes or direct market interventions to stabilize the local unit and prevent a further runaway depreciation that could compromise national economic targets.