The Philippine peso is expected to remain weak against the U.S. dollar this week as renewed conflict in the Middle East continues to dampen market sentiment.
On Friday the peso edged up by 3.3 centavos, closing at 61.587 per dollar, after trading at 61.62 the previous day. Over the past week the currency fell 7.2 centavos from its 61.515 close on July 10.
A local trader noted that the dollar‑peso pair traded sideways within a narrow band of 61.555 to 61.62, citing a lack of immediate catalysts and pending developments in the Middle East.
U.S. dollar weakness on Friday was linked to reduced hawkish expectations for the Federal Reserve following softer U.S. economic data, according to the chief economist of a major commercial bank.
The economist also highlighted a $5 billion offer from Indonesia’s PT Barito Renewables Energy to acquire a renewable‑energy subsidiary, describing the deal as a positive signal for local markets that could attract U.S. dollar inflows.
Market participants will monitor the evolving situation in the U.S.–Iran conflict, with weekend events expected to influence the peso’s direction.
The implementation of the first tranche of an ₱85 wage increase for the National Capital Region this week could exert downward pressure on the peso by generating second‑round inflation effects.
Forecasts suggest the peso will fluctuate between 61.40 and 61.70, while the economist projects a slightly broader range of 61.35 to 61.75 for the week.
