Philippine Peso Recedes to Critical 60-Per-Dollar Threshold Following Marcos Administration’s National Energy Emergency Declaration

The Philippine peso falls back to the 60-per-dollar mark after President Marcos declares a national energy emergency due to the ongoing Middle East conflict.

By: AXL Media

Published: Mar 28, 2026, 10:23 AM EDT

Source: Information for this report was sourced from Philippine Daily Inquirer

Breaching the Psychological Resistance Level

The local currency’s slide back to the 60.10 mark on Wednesday represents a significant setback for the Philippine economy, erasing recent gains that had briefly pulled the peso below the 60-per-dollar threshold. This latest finish is just 20 centavos shy of the historic low of 60.30 recorded on March 23. Market analysts note that the 60 level has become a major psychological barrier; once breached, it tends to trigger a cascade of "safe-haven" buying of the U.S. dollar. Despite an intraday attempt to stabilize, the peso remains under intense pressure as trading volumes remain heavy, reaching $1.7 billion as investors reposition their portfolios in response to regional instability.

Energy Emergency Declaration Rattles Investor Sentiment

The primary catalyst for the peso's recent decline was the Marcos administration’s unprecedented decision to declare a state of national energy emergency. By becoming the first nation to take this drastic step in response to the Middle East war, the Philippines signaled to global markets its high level of vulnerability to supply chain disruptions. This declaration has rattled investor confidence, prompting a shift away from emerging market assets toward the perceived security of the U.S. dollar. The domestic energy crisis, fueled by the month-long conflict involving U.S. and Israeli strikes on Iran, has created an environment of "extreme uncertainty" that makes the peso a less attractive holding for international capital.

Non-Intervention Policy and Foreign Reserve Strategy

President Ferdinand Marcos has signaled a pragmatic, albeit hands-off, approach to the currency’s volatility. In a recent interview with Bloomberg News, the President characterized the use of the country’s foreign reserves to defend the peso as "futile." He acknowledged that the movement of the U.S. dollar is largely driven by external geopolitical forces beyond the control of the Philippine Central Bank. This policy of non-intervention suggests that the administration is prioritizing the preservation of its "war chest" of reserves over artificial price support, effectively allowing the market to find its own floor even if it means sustained periods of weakness at or above the 60:1 mark.