The Philippine peso dropped to its lowest level in 17 months on Tuesday, reaching 57 against the US dollar. This decline was attributed to escalating tensions in the Middle East, causing concern among investors already dealing with tight financial conditions.
This performance marked the weakest showing for the peso since November 22, 2022, when it hit 57.375. The 57-level is considered a critical ceiling for the Bangko Sentral ng Pilipinas, which intervened last year when the peso reached this territory.
Despite the downward trend, the peso remains within the revised forecast range of the government. The interagency Development Budget Coordination Committee (DBCC) now projects the peso to trade between 55 and 57 against the US dollar for the year, an improvement from the previous estimate of between 55 and 58.
