The Philippine peso suffered a sharp decline on Thursday, falling 35 centavos to close at 60.48 against the US dollar, as heightened geopolitical tensions in the Middle East overshadowed the central bank's hawkish stance.
Despite the Bangko Sentral ng Pilipinas' (BSP) recent monetary tightening, the local currency weakened amid stalled US-Iran peace negotiations, which drove oil prices higher and strengthened the greenback.
Analysts noted that investor risk aversion continues to weigh on emerging market currencies, with the peso among the hardest hit in the region.