PHILIPPINE financial markets declined on Friday, with the peso depreciating for the seventh consecutive day to its weakest level in over five weeks. The currency closed at P59:$1, down 37 centavos from Thursday’s P58.63, marking its lowest point since January 27, 2026, when it closed at P59.085:$1.
Economists linked the peso’s decline to remarks by Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr., who indicated a possible tightening of monetary policy if global crude oil prices surpass $100 per barrel. Rizal Commercial Banking Corp. Chief Economist Michael Ricafort explained that concerns over inflation due to rising oil prices drove the peso’s weakness.
The ongoing conflict in the Middle East has fueled fears of higher oil costs, prompting a shift in rate expectations from easing to potential hikes. Security Bank’s Angelo Taningco noted that rising oil prices and inflation expectations contributed to the peso’s depreciation, which in turn dampened investor confidence and pressured equities across key sectors.
The Philippine stock market also declined, with the PSEi dropping 60.12 points or 0.94% to 6,320.41, and the broader All Shares index falling 31 points or 0.88% to 3,494.99. Over 1.661 billion shares worth P7.663 billion were traded, with decliners leading advancers, reflecting cautious investor sentiment amid global uncertainties caused by the Middle East conflict.
President Ferdinand Marcos earlier stated that the Philippines has a stockpile of about 50 to 60 days of petroleum supplies, with alternative sources available, as global oil prices continue to climb. The Department of Energy indicated that further price hikes could occur due to developments like the closure of the Strait of Hormuz, a critical shipping route, which could disrupt oil supply and exacerbate the already rising global oil prices.
