MANILA: The Philippine peso is on track for its longest stretch of losses in more than a year, weighed down by a surge in global oil prices.

The currency weakened as much as 0.5% to 56.7 per dollar on Tuesday (June 17), poised for a sixth consecutive day of declines - the longest losing streak since April 2024. The peso has lost 1.6% so far in June, making it the worst-performing emerging market currency this month.

The peso has come under pressure as rising oil prices, driven by heightened geopolitical tensions following the Israel-Iran conflict, add to the country’s import bill. The Philippines imports almost all of its oil requirements, making its currency particularly sensitive to energy market shocks.

"The peso is facing downside pressure for now from the oil price climb,” said Alan Lau, currency strategist at Malayan Banking Bhd.

"However, there is no clarity at this point that oil prices can hold sustainably higher given the Middle-East situation remains dynamic.” - Bloomberg