Peso, PSEi climb after Fed rate hike

The Philippine peso appreciated against its US counterpart for the third straight trading day on Thursday as global crude oil prices eased, and inflation concerns softened following the Federal Reserve’s first rate hike in three years.

The local currency gained 0.9 centavos to close Thursday at P62.73:$1 from Wednesday’s finish of P62.739:$1. The peso hit a fresh record low finish of P62.86:$1 on Monday, September 14, 2026.

Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort attributed Thursday’s appreciation to the market reception to the Federal Reserve’s 0.25-basis-point rate hike, the first since 2023, in a bid to ease inflation concerns.

He also cited the drop in global crude oil prices after Saudi Arabia offered to boost crude supplies to Asian buyers through Oman, easing concerns over supply disruptions amid geopolitical tensions.

Local equities also posted gains, as the Philippine Stock Exchange index (PSEi) grew by 41.70 points or 0.70% to 5,958.64 while the broader All Shares index climbed 17.85 points or 0.54% to 3,318.11.

“The local index closed higher as bargain hunting prevailed following the steep sell-down in the previous session. Investors took advantage of lower valuations after the recent decline,” Regina Capital Development Corp. head of sales Luis Limlingan said in a separate message.

“However, sentiment remained measured amid ongoing market uncertainties partnered with the Fed rate hike, limiting the market rebound,” he added.

More than 747.001 million shares, valued at P25.499 billion, changed hands. Decliners led advancers, 97 to 93, while 66 issues were unchanged. — BM, GMA News