Philippine peso hits record low as rising oil prices pressure Asian assets

The Philippine peso fell to a record low on Wednesday, according to Business Recorder, leading losses among Asian currencies. The slide followed a global bond selloff and higher oil prices after fresh US strikes on Iran, which unsettled investors across the region. The peso weakened to 62.652 per US dollar, while the Philippine stock market fell 1%.

An MSCI gauge of emerging market currencies lost 0.2%, a move that would end a 10-session winning run if it holds through the day. Maybank analysts said the peso may stay under pressure, citing a weak external position, subdued inflation-adjusted rates, high oil prices and likely greater imports of capital goods. Remittance inflows are also offering less support, since growth in major source markets has been modest or showing signs of slowing.

Bond investors also turned cautious, as Indonesian and Philippine 10-year benchmark paper lost 7.6% and 23.6% in price this year, LSEG data showed. Equities in emerging Asia fell 1.8%, with South Korea's KOSPI sliding 3.1% and Taiwan's benchmark down 1.3%. Traders are now looking to Friday's US nonfarm payrolls release for hints on whether the Federal Reserve could lift rates later this month.