The Philippine peso strengthened sharply on Monday, appreciating by 22.5 centavos to P61.465 against the US dollar from Friday’s P61.69 close, while the Philippine Stock Exchange index (PSEi) climbed 0.80 percent to 6,009.38, breaching the 6,000 level for the first time since 14 May, as easing oil prices and improving global risk sentiment boosted local financial markets.

Based on data from the Bankers Association of the Philippines, investors reduced safe-haven dollar positions following signs of easing tensions in the Middle East, helping the peso post its strongest close in several trading sessions after hovering near record lows earlier this month.

Intraday, the peso opened stronger at P61.35, briefly touched a high of P61.535, and traded within a firmer P61.35 to P61.535 range before settling at P61.465.

The BAP weighted average improved sharply to P61.437 from P61.594 previously, while the FX settlement rate strengthened to P61.426 from P61.54, reflecting broad-based demand for the peso throughout the trading day.

Meanwhile, the Philippine Stock Exchange index reclaimed the 6,000 level after market sentiment improved on reports of easing geopolitical tensions.

Investor sentiment improved after US President Donald Trump said negotiations with Iran were “progressing seriously,” with both sides “closer than people think” to a framework agreement.

Reports also indicated that Washington, through Omani mediators, signaled openness to allowing limited increases in Iranian oil exports during negotiations, in an apparent effort to avoid another oil price shock while global inflation remains elevated.

Following those developments, Brent crude prices fell below $100 per barrel after trading near $110 earlier this month.

Lower oil prices improved sentiment toward oil-importing economies such as the Philippines, as cheaper crude helps ease inflation risks, narrow trade deficits, and reduce pressure on currencies like the peso.

The peso’s rally also tracked broader dollar weakness in global foreign exchange markets as the dollar index softened and Asian currencies, including the Korean won and Thai baht, posted modest recoveries.

Despite the market rebound, trading activity remained subdued, with net value turnover reaching only P3.26 billion, the lowest recorded so far this year, indicating continued investor caution over further global developments.

Foreign investors remained net sellers, with outflows totaling P238.39 million.

Among sectoral indices, banks led gains with a 1.21-percent increase, while industrials slipped 0.25 percent.

Ayala Corporation gained 3.42 percent to P460 per share, while DigiPlus Interactive Corp. declined 5.48 percent to P12.08.