The Philippine peso dropped to a new record low as oil prices climbed, putting pressure on the central bank to step up its defense of the currency.

The Philippine peso weakened past 59 per dollar for the first time, extending losses driven by surging crude costs that threaten to widen the import bill. Oil prices rose above $90 a barrel, adding to inflation risks in a nation that imports most of its fuel.

Bangko Sentral ng Pilipinas officials have signaled readiness to intervene, with Governor Eli Remolona saying the central bank will act to prevent disorderly moves. The authority has already sold dollars from reserves this month to cushion the decline.

Traders watch for policy response as the peso's slide complicates the inflation outlook. A weaker currency lifts import costs, potentially forcing the central bank to keep interest rates higher for longer.