The Philippine peso is again nearing record lows as persistent inflation, geopolitical tensions, and strong US dollar demand continue to pressure local markets. Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso could retest historic weakness after falling 1.8% this week and approaching the April 30 intraday low of P61.75 against the dollar.
Markets are now watching the 62-per-dollar level as the next key resistance point, with traders also monitoring possible Bangko Sentral ng Pilipinas intervention around the P61.60–P61.70 range after Malacañang reaffirmed the BSP’s role in managing excessive foreign exchange volatility.
Ricafort said several factors could help stabilize the currency, including expectations of further BSP rate hikes following the latest 7.2 percent inflation reading, seasonal remittance inflows from overseas Filipino workers, and JPMorgan’s planned inclusion of Philippine bonds in its emerging market index beginning 2027.
Meanwhile, the Philippine Stock Exchange index remained volatile, slipping 0.6 percent on May 15 to 5,976.77 despite posting a second straight weekly gain.
Brokerage firm 2TradeAsia said the market is likely to stay range-bound amid escalating US-Iran tensions, slowing foreign investment, and lingering stagflation concerns. The firm noted that investors are increasingly favoring banks and defensive, yield-heavy stocks as they prioritize capital preservation over speculative growth.
Analysts expect markets to remain cautious in the near term as investors weigh inflation risks, oil prices, and global uncertainty.
