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MANILA, Philippines — The Philippine peso rallied back to the 56 level on Wednesday. This happened as the announcement of fresh US tariff deals with countries like Japan and the Philippines inspired optimism and diluted demand for safe havens like the dollar.
The local currency finished yesterday’s trading session at 56.881 against the greenback. It gained 16.9 centavos from its previous closing, data from the Bankers Association of the Philippines showed.
READ: Peso slides to 57:$1 as dollar bulls bet on cautious Fed
This was the peso’s strongest ending since July 15, 2025, when it closed at 56.73. Trading was brisk, with turnover rising to $1.5 billion yesterday from $1.3 billion previously.
A trader said the peso tracked a broader rally of Asian currencies. This was triggered by new tariff deals between US President Donald Trump and economies in the region like Japan and the Philippines.
Tariff onset draws near
“This can be seen as the effect of Trump’s tariff talks, as the US president has recently talked to both Japanese and Filipino presidents in order to negotiate,” the trader said. “Furthermore, the tariff’s deployment schedule draws nearer, being set in August,” they added.
After a bilateral meeting with Trump in Washington, President Marcos confirmed that the US will proceed with a 19-percent tariff on Philippine exports. This was higher than the 17 percent rate announced in April. But it is slightly below the 20 percent floated earlier this month.
READ: PH poised for slowest post-COVID growth amid tariff onslaught
In exchange, the Philippines agreed to scrap tariffs on American automobiles. It will boost imports of US soybeans, wheat and pharmaceutical products. The local currency is trading within the expectations of the Marcos administration. The latter sees the peso-dollar exchange rate hovering between 56 and 58 this year.
For Thursday trading, the trader said the peso may “weaken somewhat as the dollar recovers.”
“However, the dollar-peso should ultimately play in the 56.8 to 57.2 range as it has for most of the week,” they added.
/rwd
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