THE peso strengthened for a third consecutive trading day on Friday, hitting its strongest level in a week, as the Bangko Sentral ng Pilipinas (BSP) reiterated its readiness to intervene in the foreign exchange market to curb excessive volatility.
Local shares, meanwhile, retreated ahead of the long weekend. The Philippine Stock Exchange index (PSEi) fell 25.23 points, or 0.44 percent, to close at 5,680.35, reversing part of Thursday’s gains as investors took profits and reduced exposure amid lingering economic and geopolitical concerns.
The peso appreciated by 11 centavos to close at P63.74 against the US dollar, from P63.85 a day earlier.
The peso’s latest gain brought the local currency to its strongest closing level since Oct. 23, when it stood at P63.615, and further below its intraday record high of P64.20 reached on Oct. 27.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., attributed the currency’s recovery partly to reassurances from President Ferdinand Marcos Jr. about the government’s capacity to defend the peso, as well as possible conversions of overseas Filipino workers’ remittances ahead of the Undas long weekend.
The central bank said it intervenes during periods of unusual volatility, particularly when such movements could accelerate inflation, in keeping with its primary mandate of maintaining price stability. It also intervenes to address disorderly market conditions.
Despite the recent recovery, the peso remained weaker for the week, gaining ground only slightly against the dollar after five consecutive weeks of depreciation.
For October, the local currency weakened by P1.10, or 1.8 percent, marking its third straight monthly decline.
Ricafort said the peso also drew support from lower US Treasury yields and stronger Philippine export performance, particularly electronics shipments, which have benefited from global demand for artificial intelligence-related products.
For next week, Ricafort sees the peso trading between P63.50 and P64 against the dollar, with P63.50 serving as the next support level.
On the stock market, all sectoral indices ended lower, led by mining and oil, which declined 1.19 percent.
GT Capital Holdings Inc. was the PSEi’s top gainer, advancing 4.03 percent, while Aboitiz Equity Ventures Inc. posted the steepest drop among index constituents, falling 3.67 percent.
Research manager at Philstocks Financial Inc. Japhet Tantiangco said rising global oil prices weighed on investor sentiment amid concerns that the United States could resume attacks on Iran following its midterm elections next week.
He also pointed to Houthi attacks on Saudi Arabia and reports of tankers being struck by mines in the Strait of Hormuz.
Luis Limlingan, Regina Capital Development Corp. head of sales, said investors took profits after Thursday’s advance and maintained defensive positions ahead of the long weekend, with macroeconomic and external uncertainties continuing to weigh on sentiment.
Trading turnover reached P12.73 billion, net of extraordinary block sales. Foreign investors were net sellers, recording outflows of P4.49 million. Decliners outnumbered advancers, with 110 stocks falling, 63 rising and 68 unchanged.
