The Philippine peso sank to a new record low on Wednesday, hitting 61.62 against the US dollar amid a strengthening greenback and surging oil prices.
As of 11:03 a.m., the local currency breached the previous all-time low of 61.30 set just a day earlier, according to data from the Bankers Association of the Philippines.
The peso's decline came as crude oil prices jumped above $110 per barrel for the first time since the US-Iran ceasefire, driven by the stalled reopening of the Strait of Hormuz. Higher oil prices typically weigh on the peso because the Philippines is a net importer of crude.
Meanwhile, the US dollar firmed as markets awaited the Federal Reserve's latest policy decision. While the central bank is widely expected to hold interest rates steady, investors are closely watching for any signals on how officials assess the economic impact of ongoing global conflicts.
The peso has been under sustained pressure this year, weakening past the 61-to-the-dollar mark for the first time earlier this week. Analysts say the currency could face further headwinds if global uncertainty persists.