Peso, stocks rally to one-week high after Marcos-Trump tariff deal

Manila, Philippines – The Philippine peso rallied against the dollar to its best finish in one week – and so did stocks – after investors positively digested the outcome of the tariff talks between President Ferdinand Marcos Jr. and US President Donald Trump.

The currency returned to the P56-per-dollar territory for the first time since July 16 to settle at P56.88 against the greenback, spot exchange market data show.

The Philippine Stock Exchange index (PSEi), meanwhile, rose by 1.68 percent, or 106.56 points, to 6,462.25 in brisk trade where volume doubled overnight. That was the main index’s best showing since July 14 after uncertainties over the trade policies and casino regulations made financial markets choppy the past weeks.

Marcos emerged from a Tuesday dialogue with Trump at the White House with a lower tariff deal. Version 3.0 of the Trump tariff on Philippine goods set the levy at 19 percent, just a tad lower than the 20 percent the American leader announced earlier, but higher than the 17 percent first published in April. US-made products – automobiles in particular – meanwhile enjoy a zero tariff.

Economists view the new tariff as “aligning it with rates for other Asian nations that have already agreed deals with the US.”

“While the economic hit to the Philippines will be modest, the deal does at least help shield it from losing ground to regional rivals,” Gareth Leather, senior economist for Asia at UK-based think tank Capital Economics, said in a note to investors.

Logistics giant International Container Terminal Services, Inc. was the day’s no. 2 star – its shares rallied by 6.91 percent to last trade at P473.60 apiece.

Importer and retailer Puregold Price Club, Inc. also made it to the top ten most traded stocks, gaining 6.58 percent to P38.90 each.