Manila: The Philippine peso strengthened to the 57-level against the US dollar on Monday, while the local bourse slipped on profit-taking.

According to Philippines News Agency, the peso closed at 57.98 to a dollar, up from 58.02 on Friday. It opened at 57.95 from 58.1 previously, climbed to an intraday high of 57.91, and touched 58.02, averaging 57.95. Volume fell to USD896.5 million from USD1.34 billion last week.

Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort, in a report, said the peso was buoyed by record-high remittances from overseas Filipino workers in December and for the full year 2025. The Bangko Sentral ng Pilipinas (BSP) reported that cash remittances rose 4.2 percent year-on-year to USD3.52 billion in December, bringing the 2025 total to a record USD35.63 billion, up 3.3 percent.

Meanwhile, the Philippine Stock Exchange index (PSEi) fell 0.25 percent to 6,368.55, while the broader All Shares index dropped 0.93 percent to 3,527.29. Only Financials gained, up 0.13 percent. Industrials led decliners, down 0.89 percent, followed by Mining and Oil (-0.80 percent), Property (-0.65 percent), Holding Firms (-0.21 percent), and Services (-0.16 percent).

Volume reached 1.04 billion shares valued at PHP5.28 billion. Decliners outnumbered advancers, 140 to 79, with 51 unchanged. Luis Limlingan, head of sales at Regina Capital Development Corporation, said profit-taking persisted, dragging the PSEi lower.

Despite the decline, the 6,300-support level remained intact, suggesting limited downside for now. Investors remained cautious and took profits, even amid expectations of another BSP rate cut, he said. The BSP's Monetary Board is set to hold its first rate-setting meeting on Thursday, with markets widely expecting another cut amid subdued inflation.

Inflation rose to 2 percent in January from 1.8 percent in December, the first time it hit the lower end of the BSP's 2 percent to 4 percent target since 2.1 percent in February 2025.