The peso and the stock market are expected to remain under pressure this week due to escalating geopolitical tensions and market uncertainties.
The peso breached the 56-a-dollar mark last week to close at 56.21 against the US dollar Friday.
Analysts said the recent conflict between Israel and Iran had intensified fears of broader regional instability, leading to increased volatility in global markets.
Tantiangco said a rate cut could significantly boost the market, which has been hovering below the 6,300 level.
The BSP’s Monetary Board is scheduled to meet this week for its next rate-setting meeting.
BSP Gov. Eli Remolona Jr. earlier signaled two more possible rate cuts this year.
The bellwether Philippine Stock Exchange index managed to rebound last week after two consecutive weeks of losses, closing at 6,395.59.
However, the market failed to break through the 6,400 resistance line, with trading remaining lethargic, as seen in thin value turnovers.
From a fundamentals perspective, the local market is considered undervalued, Tantiangco said, which could present bargain-hunting opportunities for long-term investors.
The market is expected to trade between 6,350 and 6,450 this week.
