The Philippine peso reached a new record low on Monday, weakening by 2.9 centavos to P61.75 against the dollar, surpassing the previous all-time low of P61.721. Simultaneously, the Philippine Stock Market index (PSEi) fell by 35.25 points, or 0.59 percent, closing at 5,941.52. These declines reflect heightened sensitivity among investors and traders to both global and domestic uncertainties.
According to market analysts, the peso’s trading dynamics have shifted from fundamentals to sentiment-driven moves. The persistent strength of the dollar, along with increased demand for safety and higher oil-related dollar demand, has intensified the market’s sensitivity to uncertainties within the country. A trader noted that at current levels, factors such as positioning and momentum are influencing market movements, particularly in thin liquidity conditions.
In the broader context, the peso’s depreciation mirrors a trend among other Asian currencies like the Indonesian rupiah and the Indian rupee, which also hit record lows. Renewed tensions in the Gulf have driven up oil prices and global yields, consequently strengthening the dollar and placing pressure on oil-importing nations. The rupiah experienced its largest intraday percentage loss since April 2025, dropping 1.16 percent to 17,665 per dollar, while the rupee declined to an all-time low of 96.303 per dollar, further impacted by rising oil prices linked to the Iran conflict.
Market experts, including MUFG analyst Michael Wan, point out that Asian emerging market currencies are suffering due to the stronger dollar. The rupee and the peso face compounded challenges from both higher oil prices and yield-sensitive factors that also affect the rupiah. Meanwhile, Japhet Tantiangco, research manager at Philstocks Financial Inc., highlighted that investors remain defensive amid ongoing concerns about Middle East conflicts, particularly following recent threats from Trump toward Iran.
Investor sentiment has been further dampened by muted buying interest and rising global crude oil prices, according to Luis Limlingan, head of sales at Regina Capital Development Corp. Trading activity remained sluggish, with net value turnover falling to P3.85 billion, significantly below the year-to-date average, indicating continued investor hesitation. Foreign funds largely stayed out of the market, with net outflows amounting to P225.76 million. While property stocks experienced a slight uptick of 0.19 percent, the mining and oil sectors led declines with a 3.4-percent drop, resulting in a negative market breadth with more decliners than advancers.