The Philippine peso reached a new low on Monday as it fell by 2.9 centavos to P61.75 against the US dollar, surpassing the previous record of P61.721 set last Friday. Alongside this, the benchmark Philippine Stock Market index (PSEi) also experienced a decline, dropping 35.25 points or 0.59 percent to close at 5,941.52. Market participants have attributed these movements to heightened sensitivities toward global and domestic uncertainties impacting investor sentiment.
Traders suggest that the peso’s current trading pattern is increasingly driven by sentiment rather than fundamentals. A trader noted that despite the dollar’s broad strength, the peso’s decline also reflects a growing demand for safe assets, increased oil-related dollar demand, and market concerns over domestic uncertainty. The trader also pointed out that positioning and momentum at current levels could lead to exaggerated market moves, especially in conditions of thin liquidity. The near-term outlook suggests a continued bias toward a weaker peso, with the psychological barrier of P62:$1 in sight, though fluctuations in both directions are expected.
Similar trends were observed in other Asian currencies, with the Indonesian rupiah and the Indian rupee also experiencing record lows. The rupiah, one of the region’s weaker currencies, saw a 1.16 percent drop to 17,665 per dollar, marking its largest intraday percentage loss since April 2025. The Indian rupee hit an all-time low of 96.303 per dollar, continuing a downward trend that accelerated after oil prices rose in late February due to conflict in Iran. According to MUFG analyst Michael Wan, Asian emerging market currencies are under pressure from a stronger dollar, with oil prices and domestic challenges particularly impacting the rupee and the peso.
Market analysts such as Japhet Tantiangco from Philstocks Financial Inc. highlighted growing concerns over Middle Eastern tensions, particularly following recent threats by Trump towards Iran, which have kept investors cautious. Meanwhile, Luis Limlingan, head of sales at Regina Capital Development Corp., noted that buying interest remains low as investors await clearer market signals. Rising global crude oil prices and the continued weakness of the peso have further dampened market sentiment.
Trading activity remained subdued, with net value turnover dropping to P3.85 billion, significantly below the year-to-date average, indicating ongoing investor hesitation. Foreign funds also remained largely inactive, with net outflows amounting to P225.76 million. In terms of sector performance, property stocks were the only ones to end in positive territory with a slight gain of 0.19 percent, while mining and oil stocks led the declines with a 3.4-percent drop. Overall market breadth was negative, with 117 stocks declining compared to 65 advancing, and 68 issues remained unchanged.
