Manila: The Philippine peso managed to keep its footing against the US dollar on Friday but the Philippine Stock Exchange index (PSEi) slipped on continued worries over the tariff decision of the US.

According to Philippines News Agency, the local currency ended the day at 56.47, after a sideways opening at 56.55. It traded between 56.55 and 56.49, bringing the day's average to 56.46. Volume reached USD1.22 billion, lower than the previous day's USD1.39 billion. Michael Ricafort, Rizal Commercial Banking Corporation chief economist, has noted the strength of the local currency against the greenback compared to its counterparts in the region. For the end of this year, he forecasts the local unit to end between the 55.50-56.50 range as the US dollar weakens against major global currencies. Ricafort attributed this to the potential for further Federal Reserve rate cuts, following a -1.00 reduction since September 2025, as indicated by the Fed dot plot and Fed Fund Futures.

On the other hand, the local bourse's main index declined by 0.05 percent to 6,459.88 points. The broader All Shares, meanwhile, managed a 0.002 percent increase to 3,812.53 points. Half of the sectoral gauges rose, with Industrial increasing by 0.91 percent, Financials by 0.65 percent, and Mining and Oil by 0.52 percent. Property led the losers after it fell 0.79 percent, followed by Services at 0.65 percent, and Holding Firms at 0.49 percent.

Luis Limlingan, Regina Capital Development Corporation head of sales, noted that Philippine shares traded slightly in the red as investors continued to analyze the renewed tariff concerns. This followed the US release of new tariff rates on Wednesday, which included an increase on the Philippines' exports to 20 percent from 17 percent last April, effective August 1. Limlingan further highlighted that global oil prices fell over 2 percent as investors weighed the potential impact of the new tariffs on global economic growth, with Brent crude prices declining by 2.21 percent to USD 68.64 per barrel.