Philippine Peso Drops Past Key 60-Per-Dollar Level on Oil Risk

The Philippine peso fell past the key level of 60-per-dollar as elevated oil prices weigh on the country’s economic outlook.

The currency weakened as much as 1.3% to a record-low 60.30 per dollar on Thursday. The decline came even after Bangko Sentral ng Pilipinas signaled this week it had earlier as the currency approached that level.

Surging oil prices due to the Iran war is weighing on the currencies of net energy importers, which are predominantly located in Asia. The decline adds pressure on the central bank to step up its defense of the peso, which is among the worst performers in the region this month.

The Philippines is widely seen by economists as one of the most vulnerable nations in the region to inflation and growth risks from high energy cost. President Ferdinand Marcos Jr. does not want the peso to weaken to 60 against the dollar, his press officer said in January.