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

The Philippine peso slid to a record low on Wednesday, leading losses among Asian currencies as a global bond market rout and higher oil prices following renewed US attacks on Iran rattled risk sentiment across the region. MSCI’s global EM currency index slipped 0.2%, putting it on track for its worst session in a month and to snap a 10-session winning streak if current trends hold. Assets across emerging Asia came under pressure as investors shed risk assets after US Treasury yields climbed to multi-year highs and oil prices topped the key $95-a-barrel mark after Washington launched fresh strikes on Iran. The Philippine peso hit a record low of 62.652 per US dollar, pressured by elevated oil prices and concerns over the country’s external position. The country’s stock market slid 1%. Maybank analysts said the peso was likely to remain under pressure because of its “unfavourable external position and low real rates”, with high oil prices and the prospect of increased capital goods imports likely to weigh on the currency. Dollar holds firm as Middle East hostilities lift oil Additionally, remittance flows are providing less support as growth from major source markets such as the Uni