Manila: The Philippine peso maintained its position against the U.S. dollar on Tuesday, while the Philippine Stock Exchange index (PSEi) experienced a downturn, largely influenced by ongoing tensions in the Middle East.

According to Philippines News Agency, the local currency concluded the trading day at 61.738 per U.S. dollar, a marginal change from its previous close of 61.730. The peso opened at 61.77, showing little variation from the previous day's opening of 61.75. Throughout the day, it fluctuated between 61.79 and 61.65, resulting in an average of 61.71. The trading volume increased significantly to USD1.57 billion, compared to USD970.2 million the previous day.

Conversely, the PSEi saw a decline of 0.98 percent, closing at 6,190.23 points. The broader All Shares index also fell by 0.65 percent, ending at 3,412.44 points. All sectoral indices ended in negative territory, with the Services sector leading the decline at 1.65 percent. The Holding Firms followed with a 1.05 percent drop, while Mining and Oil, Financials, Property, and Industrial sectors fell by 0.77 percent, 0.65 percent, 0.26 percent, and 0.06 percent, respectively.

The day's trading volume amounted to 800.44 million shares, valued at PHP5.27 billion. Declining stocks outnumbered advancing ones, with 108 decliners to 77 advancers, and 66 stocks remained unchanged.

Philstocks Research commented in a market report that the local market's decline was driven by investors' sell-off amid a lack of positive catalysts. The ongoing US-Iran situation, which is escalating into economic warfare with potential impacts on Iran's trading partners due to the US's latest campaign, is also adversely affecting market sentiment.