THE peso fell to a fresh record low on Wednesday as the dollar strengthened, and the stock market also slipped as investors chose to take profits.
The currency closed at P59.44:$1, weaker by 9.9 centavos. The result was the second all-time low this month since the P59.355:$1 recorded on Jan. 7.
The benchmark Philippine Stock Exchange index (PSEi), meanwhile, shed 18.95 points, or 0.30 percent, and ended the day at 6,389.81.
The broader All Shares was basically flat, losing 2.44 points or 0.77 percent to 3,635.94.
The peso opened at P59.38 and traded between P59.35 and P59.45. Volume declined to $951 million from $999.22 million previously.
A trader said the peso weakened as US growth was “holding up, rates are staying higher for longer and policy uncertainty around the US Federal Reserve (Fed) is reinforcing the dollar’s safe-haven appeal.”
“Fed uncertainty hasn’t weakened the dollar — it’s actually strengthened it by keeping rates high and investors defensive,” the trader added.
HSBC Private Bank and Premier Wealth Chief Investment Officer Cheuk Wan Fan said the peso was likely to remain “largely range bound this year.”
“We hold a neutral view on the peso over the next six months,” Fan said, adding that the peso could end the year at P59.2 against the dollar.
Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. has said that the central bank does not see the need to actively defend the peso despite “tremendous pressure” to do so.
The currency has been trading in the P58-59 per dollar level over the last three months and has hit new record lows on worries about economic growth and continued interest rate cuts.
‘Healthy profit-taking’
The PSEi, meanwhile, fell for a second consecutive session with investors said to be booking profits following a three-day rally.
Despite the pullback, the index remains near its highest level in over five-and-a-half months, with all losses since the late-July 2025 political noise fully erased and the market holding firmly above the 6,000 level for more than a month.
RCBC chief economist Michael Ricafort said the correction was “a healthy profit-taking move” after the market’s strong rebound from its Nov. 14, 2025 low of 5,584.35, the weakest in more than five years.
He said the PSEi’s resilience reflected improving investor confidence, supported by sustained net foreign buying, easing inflation pressures and expectations of monetary policy support.
“The PSEi’s ability to stay above 6,000 is a positive technical signal, especially amid continued foreign inflows and expectations of possible BSP rate cuts in 2026,” Ricafort said.
He added that the market was also drawing support from a renewed focus on governance reforms and improving sentiment regarding the Philippine economy.
Four of the six sectoral indices closed Wednesday in the green with holding firms up the most by 1.57 percent. Services and industrial fell by 1.77 percent and 1.21 percent, respectively.
Decliners edged out advancers on a company basis, 97 to 95, while 71 were unchanged. WITH A REPORT FROM NAZYLEN JOY MABANGLO
