Concerns over energy supply shortages rise, Philippine peso weakens significantly

(1) The Philippine peso weakened significantly against the US dollar during the Asian trading session, as the market is concerned that the Middle East conflict may trigger an energy supply shortage. According to Huitong Finance data, the US dollar rose 1.0% against the peso, quoted at 59.6335. (2) Michael Wan, Senior Currency Analyst at MUFG Bank, pointed out in a report: "This crisis is different from previous ones. It's not just about rising oil prices, but rather a potential energy shortage is looming." (3) MUFG Bank believes that if the Middle East conflict continues, the peso will be vulnerable, and the USD/PHP exchange rate may break above the 60 level. Wan added that the main areas of potential shortage include crude oil, petroleum products, natural gas, and natural gas condensate.