Peso steady, stocks slip

The Philippine peso held firm against the U.S. dollar on Friday, even as the local stock market edged lower on persistent concerns over newly announced U.S. tariffs.

The peso closed at P56.47 against the greenback, slightly stronger after opening at P56.55. It traded within a narrow range of P56.49 to P56.55, with an average rate of P56.46. Trading volume slipped to USD1.22 billion from Thursday’s USD1.39 billion.

Rizal Commercial Banking Corporation Chief Economist Michael Ricafort said the peso performed better than several regional currencies, citing expectations of a softer U.S. dollar by yearend.

“Further U.S. Federal Reserve rate cuts are likely this year, with Fed projections and futures indicating possible cuts of up to 0.50 percent, following a 1.00 percent reduction since September 2025,” Ricafort explained. He forecasted the peso to end 2025 within the P55.50–P56.50 range.

Despite the peso’s resilience, the Philippine Stock Exchange index (PSEi) dipped by 0.05 percent to 6,459.88, as investors grew cautious over the economic impact of rising U.S. tariffs. The broader All Shares index was flat, inching up by just 0.002 percent to 3,812.53.

Three sectoral indices gained—Industrials (+0.91%), Financials (+0.65%), and Mining and Oil (+0.52%)—while Property (-0.79%), Services (-0.65%), and Holding Firms (-0.49%) declined.

“Philippine shares traded slightly in the red as investors continued to digest the implications of renewed tariff pressures,” said Luis Limlingan, head of sales at Regina Capital Development Corporation.

This cautious sentiment followed the U.S. government’s announcement on Wednesday of new tariffs, including an increase on Philippine exports to 20 percent from 17 percent, effective August 1.

Global oil markets also took a hit, with Brent crude prices falling 2.21 percent to USD68.64 per barrel, as markets weighed the broader economic implications of escalating trade barriers.