Peso surges to five-month high on tariff ruling

The peso surged to a five-month high against the dollar on Monday after the US Supreme Court ruled that the reciprocal tariffs imposed by President Donald J. Trump on their trading partners were unconstitutional.

The local unit jumped by 57.5 centavos to close at PHP 57.575 versus the greenback from its PHP 58.15 finish on Friday, data from the Bankers Association of the Philippines showed.

This was the peso’s strongest finish in five months or since it closed at PHP 57.461 per dollar on Sept. 24, 2025.

The local currency opened Monday’s trading session stronger at PHP 57.95 against the dollar. It surged to a high of PHP 57.53, while its weakest showing was at just PHP 57.999 against the greenback.

Dollars traded rose to USD 1.716 billion from USD 1.368 billion on Friday.

“The dollar-peso traded lower on broad dollar weakness following the Supreme Court’s ruling on Trump’s tariff and renewed worries on fiscal policy and tariff concerns,” a trader said in a phone interview.

The peso jumped as the decision led to gains in emerging-market stocks and currencies, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

For Tuesday, the trader said the peso could move between PHP 57.30 and PHP 57.70 per dollar, while Mr. Ricafort expects it to range from PHP 57.45 to PHP 57.70.

Emerging Asian currencies strengthened on Monday as uncertainty over US trade policy kept the dollar under pressure, while regional equities moved higher, spearheaded by gains in South Korea and Taiwan, Reuters reported.

MSCI’s emerging market currency index climbed 0.24%, hovering just below its record peak hit on Feb. 12.

The dollar index weakened after Mr. Trump unveiled a blanket 15% import levy in response to a US Supreme Court ruling against his sweeping tariffs.

A 15% global tariff rate would be a modest relief for India and ASEAN economies like Malaysia, Thailand, Indonesia, the Philippines and Vietnam, according to analysts at Barclays, though the levy would be higher for Singapore with a present rate of 10%.

The Singapore dollar edged up 0.2% and the South Korean won, Thai baht and Taiwanese dollar all gained over 0.3%.

The narrative in Asian emerging markets has shifted from tariff fears to competitiveness, with supply chains viewed as more diversified than in 2018 and economies tied to artificial intelligence (AI) hardware, capital goods and advanced manufacturing viewed as better positioned than pure export plays, said Billy Leung, investment strategist at Global X ETFs Australia.

Regional equities advanced, with Taiwan’s benchmark touching a record high of 34,212.38 points before closing 0.5% higher.

South Korea’s KOSPI index, another key beneficiary of advancements in AI, gained 0.7%. The benchmark rose 2.1% earlier in the day, to hit a record high.

Indonesian stocks rose 1.4% after the Indonesia Stock Exchange late on Friday unveiled a series of capital market reforms, following a January warning from MSCI that the country risked a downgrade to frontier status by as early as May.

Thailand equities rose as much as 1.5%, clocking their highest since mid-October 2024. Equities in the Philippines advanced 1% while Singapore and Malaysia stocks rose 0.2% and 0.3% respectively. — A.M.C. Sy with Reuters