The Philippine peso weakened sharply on Tuesday, closing at P61.71 per US dollar, its lowest level in recent memory.
The currency shed 11.1 centavos from the previous session’s close of P61.599, reflecting a sudden surge in risk aversion among investors.
The sell-off was driven by fresh uncertainties stemming from recent military clashes between the United States and Iran.
As geopolitical tensions escalate, market participants are rotating into safe-haven assets, with the US dollar benefiting from the flight to safety.
This dynamic has put additional pressure on emerging market currencies, including the peso, which is highly sensitive to shifts in global risk sentiment.
The move underscores the vulnerability of frontier and emerging market currencies to external geopolitical shocks.