By 8.50 am on Thursday, one dirham was buying 16.36 pesos, marking one of the strongest levels for UAE-based senders in recent months. The move reflects a sharp depreciation in the Philippine currency, which has come under sustained pressure through March.
Steady climb through March
The shift has not been sudden. Rates at the start of the month were closer to 15.63 pesos per dirham on March 1, gradually strengthening through the first week toward the 15.9 range. Momentum picked up mid-month, with the dirham crossing 16.1 on March 12 and holding near 16.2 levels through March 13 to March 16.
Oil pressure drives currency weakness
The peso’s decline is closely linked to global oil markets, where higher prices are placing strain on economies that rely heavily on energy imports.
The currency slipped past the key 60 level against the US dollar, touching a record low near 60.40, as rising crude prices fed into inflation concerns and widened trade pressures. The Philippines, which depends on imported fuel, remains exposed to these shifts.
Central bank policy has also shaped the move. The Bangko Sentral ng Pilipinas signalled that intervention would focus on smoothing volatility rather than defending a specific exchange rate, allowing the peso to adjust to market pressures.
Inflation risks add to outlook concerns
Higher oil prices are feeding into transport, power and production costs, raising the risk of broader inflation. Economists continue to flag the Philippines among the more exposed economies in Asia when it comes to energy-driven price shocks.
This backdrop has placed the peso among the weaker regional currencies in March, adding to pressure on policymakers while improving returns for overseas workers sending money home. Every Dh1,000 now converts to roughly 16,360 pesos, compared with around 15,600 pesos at the start of the month, offering a noticeable gain without any change in transfer amount.
Movements remain tied to oil prices and global risk sentiment, suggesting volatility could persist. That keeps the window open for expats watching exchange rates closely, with further swings likely to be driven by energy markets and central bank responses in the weeks ahead.
– With inputs from Bloomberg.
Nivetha Dayanand is Assistant Business Editor at Gulf News, where she spends her days unpacking money, markets, aviation, and the big shifts shaping life in the Gulf. Before returning to Gulf News, she launched Finance Middle East, complete with a podcast and video series.
Her reporting has taken her from breaking spot news to long-form features and high-profile interviews. Nivetha has interviewed Prince Khaled bin Alwaleed Al Saud, Indian ministers Hardeep Singh Puri and N. Chandrababu Naidu, IMF’s Jihad Azour, and a long list of CEOs, regulators, and founders who are reshaping the region’s economy.
An Erasmus Mundus journalism alum, Nivetha has shared classrooms and newsrooms with journalists from more than 40 countries, which probably explains her weakness for data, context, and a good follow-up question.
When she is away from her keyboard (AFK), you are most likely to find her at the gym with an Eminem playlist, bingeing One Piece, or exploring games on her PS5.
