The Philippine peso depreciated to 60.71 against the US dollar on Wednesday, while the stock market declined, driven by rising global oil prices that stoked inflation concerns.
The peso closed at 60.71, weaker than the previous session's 60.52, according to the Bankers Association of the Philippines. Meanwhile, the Philippine Stock Exchange index (PSEi) fell by 1.2% to 6,890.21, led by losses in mining and oil shares.
Analysts attributed the sell-off to higher crude prices, which have climbed above $95 per barrel amid supply cuts by major producers. The increase in oil costs raises the country's import bill and pressures the currency, as the Philippines is a net oil importer.
"The market is pricing in the impact of expensive oil on inflation and the trade deficit," said a local economist. "This could prompt the central bank to maintain its hawkish stance, weighing on equities."
Traders also cited risk-off sentiment ahead of the US Federal Reserve's policy meeting next week, where interest rates are expected to remain elevated.