Peso strengthens back to P60:$1 level on US-Iran peace deal

The Philippine peso appreciated for the fourth straight trading day on Monday to mark its best showing in over five weeks, as the market took into consideration the possible end of the conflict between the United States and Iran.

The local currency gained 87 centavos to close at P60.48:$1 from last Thursday’s finish of P61.35:$1. This is the strongest performance of the peso in over five weeks since it closed at P60.42:$1 on May 7, 2026.

“The US dollar/peso exchange rate sharply improved after the US and Iran agreed to an interim deal to end their war, potentially allowing the Strait of Hormuz to reopen,” Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort said in a mobile message.

US and Iranian officials over the weekend agreed on a framework to end their war, with the memorandum of signing scheduled to be officially signed on Friday in Switzerland.

The development drove global crude oil prices to drop to the $80-per-barrel levels, the lowest in months, which could help reduce the country’s import bill.

The local equities market also posted a sharp climb, with the Philippine Stock Exchange index (PSEi) closing up by 6.14% or 362.82 points to 6,272.88. The broader All Shares index increased by 144.40 points or 4.39% to 3,434.35.

All sectoral indices grew, with financials posting the biggest jump of 9.04%, followed by mining and oil with 7.41%, holding firms by 5.98%, services by 4.97%, property by 4.79%, and industrial by 2.56%.

More than 679.388 million shares, valued at P12.745 billion, changed hands. Advancers led decliners, 144 to 58, while 43 issues were unchanged.

“The local bourse ended significantly higher after the US and Iran reached an agreement and announced the end of the Strait of Hormuz blockade, easing geopolitical concerns,” Regina Capital Development Corp. head of sales Luis Limlingan said in a separate mobile message.

“The development triggered strong buying pressure, making the local index one of the top gainers in the region,” he added. — BM, GMA News