The peso’s recent rise is taking a short break, and analysts say that’s normal.
After strengthening for five straight days, the peso weakened slightly to P58.15 against the dollar. Michael Ricafort, chief economist at Rizal Commercial Banking Corp., described the move as a “healthy correction,” meaning it’s a natural pause after a strong run.
The shift came after the Bangko Sentral ng Pilipinas cut interest rates by 0.25 percentage point and signaled it may ease further. Lower interest rates can make the peso soften because investors sometimes move money to markets offering higher returns.
Still, the currency remains relatively strong compared to the past few months and is expected to trade within a tight range for now.
On the stock market side, analysts at 2TradeAsia said the rate cut helped lift investor confidence. The Philippine Stock Exchange index climbed back above 6,400 and closed the week at 6,450.
Lower borrowing costs are generally good for businesses and consumers because loans become cheaper. That can support spending and investment, helping the economy grow.
Mining, oil, and services stocks led gains, while property shares lagged. Trading was relatively light due to the holidays.
Ricafort and 2TradeAsia expect more gradual rate cuts for the rest of 2026, which could continue supporting both the peso and stocks even if global uncertainty and political risks may keep markets cautious.
