The Philippine central bank intervened after the peso fell to 61.75 per USD, selling dollars amid rising oil prices and shrinking reserves.
The Philippine peso dropped to a record low of 61.75 against the USD, prompting central bank intervention through dollar sales. Higher oil prices are pressuring Asian importers, threatening to widen the current account deficit and fuel inflation.
Foreign reserves have declined over 5% this year, with PHP holdings near year-to-date lows. Unlike other regional currencies, the peso lacks a carry trade buffer, increasing reliance on monetary policy vigilance despite growth concerns.
Other oil-importing Asian nations, including India, have also intervened to curb currency weakness. Japan remains at the verbal intervention stage, while the Philippines and India resort to dollar sales to mitigate inflation risks.