Manila, Philippines – The peso stayed close to its record-low of ₱59.50 against the dollar on Thursday, March 12, as the greenback rallied given its safe-haven appeal amid the rapid increase in energy prices.
Thursday’s exchange rate was ₱59.385 per dollar, just 12 centavos shy of the all-time low the local currency hit last Monday, March 9, according to data from the Bankers Association of the Philippines.
Still, the peso sank to as low as ₱59.65 against the greenback, breaking its March 9 record low.
Elsewhere, the dollar gained as the surge in crude prices posed a threat to global growth, with economists warning that prolonged conflicts would further amplify the economic impact.
Unsurprisingly, the world’s biggest energy importers have seen their currencies post the largest losses against the dollar since the start of the war. The euro and the Korean won have lost 2 percent to 3 percent, while the Indian rupee and Japanese yen have lost more than 1.5 percent each.
Meanwhile, the dollar has risen by more than 1.5 percent against a basket of major currencies and is close to its highest level since November, thanks in part to its safe-haven appeal, but also because the United States is a net energy exporter.
“Those currencies which are larger net energy importers will likely weaken versus those who are not,” Joey Chew, head of Asia FX research at HSBC in Singapore, said.
Brent crude futures rose more than 10 percent at one point to highs of $101.59 per barrel, even after the International Energy Agency on Wednesday agreed to release a record 400 million barrels of oil from strategic stockpiles to combat the spike in crude prices.
Oil market volatility has continued to climb, with Iran saying the world should be ready for crude at $200 a barrel as its military attacked merchant ships on Wednesday, and vessel traffic through the Strait of Hormuz dwindled to a trickle.
The euro slipped 0.2 percent to $1.154, nearing its lowest level since November, while the yen briefly depreciated past the 159-per-dollar mark and was approaching its weakest level since July 2024.
The pound fell 0.2 percent to $1.338, a little above its weakest point of the year so far. – With a report from Reuters
