The Philippine peso slipped to a new record low as escalating tensions in the Middle East continued to boost demand for the U.S. dollar.
The local currency weakened by 14 centavos to close at 60.69 per dollar, breaking its previous record finish of 60.55 in the prior trading session. During the day, it dropped to an intraday low of 60.84 before trimming losses toward the close.
Trading activity increased, with total volume reaching $2 billion, up from $1.3 billion a day earlier, as investors reacted to developments abroad.
Global financial markets were pressured by fears that the conflict in the Middle East could widen. Oil prices rose while most stock markets declined, reflecting growing concern over the potential expansion of hostilities.
Over the weekend, Yemen’s Houthi rebels said they launched a barrage of cruise missiles and drones at strategic targets in Israel. The announcement heightened concerns that the conflict could spread beyond its current scope.
The situation also raised fears of disruptions to major energy routes. Saudi Arabia began redirecting oil shipments through the Red Sea to avoid the Strait of Hormuz, a key chokepoint that handles about 20 percent of the world’s oil and gas supply and has been effectively closed by Iran.
Oil prices climbed in response, reaching their highest levels in recent weeks. Benchmark crude contracts rose by more than three percent during trading, with Brent crude nearing $117 per barrel before easing later in the session.
