THE local currency further strengthened on Wednesday as the dollar’s weakness persisted while stocks staged a rebound on bargain-hunting and hopes for a further policy rate cut this week by the Bangko Sentral ng Pilipinas (BSP).
The peso closed at P57.861:$1, up by 12.5 centavos from the previous level of P57.986. This is the local currency’s highest close since Sept. 24, 2025, when the peso ended at P57.461:$1.
It opened at P57.94 and traded between P57.84 and P58.04 during the session. Trading volume reached P1.046 billion.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso strengthened as the United States dollar’s value against major global currencies hovered near two-week and five-month lows, mainly due to the Japanese yen gaining against the dollar.
In line with the firmer peso, the Philippine Stock Exchange index (PSEi) closed higher on Wednesday, rising 26.22 points or 0.41 percent to 6,394.77, as investors hunted for bargains following a three-day decline.
Analysts said positive cues from Wall Street, the stronger peso and hopes of a further policy rate cut by the BSP combined to lift market sentiment.
Trading activity by value remained muted, however, with net value turnover at P5.13 billion, below the year-to-date average of P6.32 billion. Foreign investors were net buyers, pumping in P467.67 million.
Among sectors, services led the gains, climbing 1.65 percent, while industrials fell 0.72 percent. Advancers edged out decliners, 101 to 93.
DigiPlus Interactive Corp. was the day’s biggest gainer, soaring 4.80 percent to P14.42, while Semirara Mining and Power Corp. was the worst performer, plunging 13.60 percent to P22.55.
Market observers noted that the benchmark index’s rebound reflected cautious optimism ahead of the BSP’s scheduled policy rate review on Thursday.
“Investors appeared to position themselves ahead of the BSP decision, with selective buying in key index names,” said Luis Limlingan, managing director at Regina Capital Development Corp.
Michael Ricafort, chief economist at RCBC, added that the index has stayed consistently above 6,000 for more than two months, signaling a stable near-term bottom.
He said factors supporting this development include the strengthening peso, record-high overseas Filipino worker remittances, declining government bond yields and favorable global market conditions.
“The market continues to react to potential policy rate cuts, good governance reforms and geopolitical developments, all of which remain key catalysts for 2026,” Ricafort noted.
Meanwhile, Japhet Tantiangco, research manager at Philstocks Financial Inc., highlighted that despite a tepid trading session, optimism over a possible BSP rate cut and bargain hunting helped push the market higher.
The PSEi faces resistance near 6,500, with potential to retest the previous high of 6,591.94, while immediate support is seen at 6,175–6,315, analysts said.