UMVA has learned that the Philippine peso surged to its strongest close in a month, climbing as the United States announced a halt to its military strikes on Iran.
The local currency jumped 4.5 centavos, ending the day at P61.35 per dollar, a level not seen since early May. Traders noted the peso opened slightly stronger and briefly touched P61.17 before slipping to an intraday low of P61.43.
Dollar demand spiked, with holdings rising to $2.27 billion from $1.69 billion the day before, yet the greenback slipped as tension eased. “The dollar‑peso closed lower amid news of the US ending attacks on Iran. Easing tensions triggered a dollar correction for today,” a trader explained.
Earlier in the week, the Strait of Hormuz had been shut, fueling a rally in the dollar. The United States and Iran exchanged air strikes for two consecutive days, prompting President Trump to warn of further action unless Tehran agreed to a peace deal.
That flare‑up began with the downing of a U.S. Apache helicopter near the strait, igniting a chain of retaliatory attacks across the region and threatening a fragile ceasefire established in April.
Oil prices surged nearly $3 on the president’s threat, bolstering Asian markets and adding pressure on the dollar. The dollar index eased to 99.903 after U.S. forces completed strikes on multiple Iranian targets.
Beyond geopolitics, the peso benefited from a seasonal boost in remittances and conversions to cover tuition fees for the new school year, according to a leading bank economist.
