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Philippine peso weakens as oil surge prompts central bank dollar sales

BNY said the peso fell to a record low near 61.75 per dollar, with reserves already down more than 5% this year.

Reported · Written up by our desk · EM Currencies

FXStreet notes that BNY analyst Geoff Yu said the Philippine central bank has intervened as higher oil prices weigh on Asian oil importers, increasing pressure on the Philippine peso.

Yu pointed to reported US dollar sales after the peso dropped to a record low near 61.75 per dollar, adding that reserves have already fallen more than 5% year to date.

According to BNY’s flow data cited by FXStreet, Philippine peso holdings are close to their lowest level for the year, signaling rising vulnerability.

The analyst also said oil related currency pressure can worsen the current account and add to inflation, and that the central bank’s actions aim to slow passthrough from oil into inflation and confidence.

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