The peso and Philippine equities continued to face mounting pressure as investors grappled with persistent inflation concerns, global market volatility, and cautious sentiment over the domestic outlook.
Analysts said the local currency remains vulnerable after weakening 1.8 percent week-on-week, with the dollar-peso exchange rate climbing to fresh highs.
Despite the decline, Michael Ricafort, chief economist at Rizal Commercial Banking Corp., noted that the peso could stabilize within the P61.20 to P61.40 range against the US dollar, while stronger support may emerge between P60.85 and ap61.05. These levels, he said, could help prevent a re-test of the P60.345 low recorded on May 7.
Ricafort added that seasonal remittance inflows, possible policy tightening by the Bangko Sentral ng Pilipinas, and signals favoring currency stability may provide temporary support for the peso. Longer-term support is seen near P60.25, with the possibility of appreciation toward the P60.00 level and the April 8 low of P59.33 if market conditions improve.
Meanwhile, Philippine equities remained fragile, with the Philippine Stock Exchange index slipping 0.26 percent week-on-week to close at 5,961.40. Observers attributed the decline to sustained foreign selling, thinner trading liquidity, and growing concerns over global inflation and elevated oil prices.
2TradeAsia said the market may stay volatile in the near term as investors monitor weaker corporate earnings, tighter financial conditions, and political uncertainties that continue to weigh on risk appetite.
