The Philippine peso edged weaker last week, pausing after two consecutive weeks of gains as the dollar-peso pair settled into a narrow trading band.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said resistance at P60.25–P60.50 continues to cap upward movement, preventing a re-test of the P60.84 record high. On the downside, support near the P60 psychological level and P59.80 has helped stabilize the currency, with deeper support at P58.70–P59.10 reinforcing a broader recovery trend from February lows.
The relatively orderly movement suggests the peso remains in a consolidation phase rather than entering a new depreciation cycle. Still, the currency’s inability to strengthen further underscores persistent external pressures, particularly from a firm US dollar and cautious global risk sentiment.
Equities mirrored the subdued tone. The benchmark PSE index fell 1.6 percent, nearly wiping out earlier gains, though key support zones between 5,945 and 5,985 remain intact.
Ricafort noted that while the short-term uptrend is technically still in place, a drop below 5,840 could jeopardize the market’s five-month recovery. Resistance levels from 6,000 to 6,350 continue to define the upside range.
Brokerage firm 2TradeAsia flagged mounting headwinds, including geopolitical tensions and disruptions in global energy flows, which are dampening investor appetite. Increased foreign selling and concerns about fiscal pressures are adding to the cautious mood.
Taken together, the near-term outlook points to sideways, volatility-prone trading. Investors are likely to stay defensive, favoring liquid positions and sectors resilient to inflation.
Until clearer signals emerge on global growth, policy direction, and geopolitical risks, both currency and equity markets may remain stuck in a holding pattern rather than staging a decisive breakout.
