The Philippine peso sunk to its weakest value against the US dollar in history, breaching the P61-to-a-dollar.

The PH peso closed at P61.300:$1, shedding 59 centavos of its value from Monday’s finish at P60.71.

The peso flirted the P61-to-$1 mark during the intraday trading after opening at P60.8:$1.

The local unit’s weakness was attributed to the “lack of progress on negotiations between the US and Iran for more than two weeks already” and “the continued closure of the Strait of Hormuz that could reduce global crude oil and liquefied natural gas (LNG) supplies,” according to Rizal Commercial Banking Corp. chief economist Michael Ricafort..

SM Investments Group economist Robert Dan Roces, likewise, said there is a steady local demand for dollars from importers which added pressure for the local currency.

“The peso’s weakness is driven more by global factors, and the hike likely slowed the drop rather than reversed it,” Roces said.

Ricafort, meanwhile, cited recent “local political noise” that could distract the passage of priority legislative reform measures on further improving governance standards, fiscal management, and on the overall economy.