Manila, Philippines – The peso returned to the P59-per-dollar level for the first time in three weeks on Monday, Jan. 5, amid the greenback’s broad rally against major currencies as traders looked past Washington’s weekend raid in Venezuela and the capture of President Nicolas Maduro.
But stocks rose.
The exchange rate settled 29 centavos weaker at P59.13 against the greenback, according to data from the Bankers Association of the Philippines. The last time the local currency breached that level was on Dec. 15, when it ended the session at P59.04 against the dollar.
Investors have been jittery over fiscal concerns in the past session as the government operated on a reenacted budget at the start of 2026 until President Ferdinand “Bongbong” Marcos, Jr. signed the 2026 national budget on Monday, Jan. 5, but with a veto on some items that could be a source for leaks or avenues for corruption.
The fresh budget did not help placate investor worries with lawmakers’ reactions a mixed bag. Washington’s capture of Venezuelan leader Nicolas Maduro and world leaders opposing military action have been a source of fresh volatility too in early session.
“[G]eopolitical tensions between the U.S. and Venezuela add another layer of volatility,” BDO’s research unit said in a note to investors.
But the dollar gained momentum in the late session, as outlook remains closely tied to the monetary policy path – the Philippines is set to release December inflation data on Tuesday, while US macroeconomic indicators are due out this week that could determine the direction of Federal Reserve rate policy.
The greenback climbed to a three-and-a-half week peak versus the euro, and hit a two-week high against the yen, Swiss franc and Canadian dollar.
The Philippine Stock Exchange index (PSEi) meanwhile gained 0.48 percent at 6,164.53 amid buying pressure.
“Gains persisted despite the depreciation of the peso against the US dollar,” Regina Capital managing director Luis Limlingan said in a note to investors. – with Reuters
