THE PESO plunged to a new all-time low against the dollar on Thursday as investors flocked to safety after global oil prices jumped on supply fears and amid the political instability in France.

The currency slid by 15 centavos to end at P62.90 versus the greenback from its P62.75 finish on Wednesday, data from the Bankers Association of the Philippines’ website showed.

This was a new record-low finish for the peso, eclipsing the P62.86 logged on Sept. 14. Still, this was better than the intraday trough of P62.925 seen on Sept. 15, which is the lowest level the peso has ever touched.

Year to date, the peso has depreciated by P4.11 or 6.53% from its P58.79 close on Dec. 29, 2025.

The local unit opened Thursday’s session stronger at P62.65 per dollar, which was already its intraday high. Its weakest showing was its closing level of P62.90.

Dollars traded rose to $1.45 billion from $1.208 billion.

The peso closed at a new all-time low due to strong risk-off sentiment amid renewed tensions in the Middle East paired with fiscal and political concerns in Europe that raised fears of a potential contagion, a trader said by phone.

“The peso’s latest weakness reflects a combination of persistent dollar strength and rising external price pressures. The US dollar continues to draw support from the US Federal Reserve’s higher-for-longer policy stance and elevated Treasury yields, while oil prices above $100 per barrel have raised concerns over inflation and the country’s import bill,” Union Bank of the Philippines Chief Economist Ruben Carlo O. Asuncion said in a Viber message.

He added that the faster-than-expected September inflation data reinforced tightening bets, although investors were mainly focused on broad dollar strength and global risk sentiment.

Philippine headline inflation, as measured by the consumer price index (CPI), accelerated to 7.2% in September from 6.1% in August and 1.7% a year ago. This matched the April clip and was the fastest in three-and-a-half years or since the 7.6% in March 2023. It also marked the seventh straight month inflation remained above the central bank’s 3% target.

Analysts said the September print strengthens the case for another Bangko Sentral ng Pilipinas rate hike.

The Monetary Board’s last two policy reviews this year are scheduled for Oct. 22 and Dec. 17. Since April, the central bank has raised rates by a cumulative 75 basis points to bring the target reverse repurchase rate to 5%.

“The recent decline in gross international reserves (GIR) to just below $100 billion also contributed to concerns over the country’s external buffers,” Mr. Asuncion added.

The country’s GIR fell to $99.997 billion in the nine months to September, down 8.31% from the $109.06 billion seen a year ago, preliminary data from the BSP showed.

This was the lowest level in three years or since the $98.116 billion logged in September 2023 and also marked the seventh straight month that reserves dropped year on year.

Elevated US Treasury yields also increased the attractiveness of the greenback, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“Moving forward, we expect the peso to remain volatile and generally biased toward weakness, with US rates, oil prices, geopolitical developments, and BSP policy signals likely to remain the key drivers of the exchange rate in the near term,” Mr. Asuncion said.

Meanwhile, the trader said the peso could test the P63 level as elevated oil prices are driving demand for the greenback, adding that it could break the psychological level depending on the outcome of the Fed’s meeting this month and if oil prices near the $136 a barrel high seen in April.

The trader added there could be an attempt at the P63 level in the coming days, but the pair could see a correction afterwards.

For Friday, the trader sees the peso moving between P62.60 and P63 against the greenback, while Mr. Ricafort expects it to range from P62.75 to P62.95. — Aaron Michael C. Sy