The Philippine Stock Exchange index (PSEi) was down 24.69 points, a 0.38 percent drop to 6,424.21.
The broader All Shares index was down 12.73 points or 0.37 percent to 3,426.81.
Losers edged gainers 111 to 69 with 42 stocks unchanged. Trading turnover reached P5.17 billion.
The peso closed at 55.645 down from 55.52 on Tuesday.
The currency opened at 55.62 an hit high of 55.57 and a low of 55.68. Trading turnover reached $1 billion.
South Korea’s won and the Thai baht led losses in major Asian currencies against a broadly strong dollar on Wednesday as investors maintained a cautious stance ahead of Federal Reserve Chair’s testimony due later in the day.
The won weakened 0.9 percent while the baht slipped 0.4 percent.
US Fed chair Jerome Powell faces lawmakers in two days of testimony and is likely to be questioned on whether rates will really rise again in July and peak in a 5.5-5.75 percent range as projected.
“Investors fear Powell will hint that rate hikes could resume next month after the hawkish pause at last week’s FOMC meeting,” DBS analysts said in a note.
The US dollar index, which measures it against a basket of currencies, strengthened 0.1 percent to trade at 102.65.
OCBC currency strategist Christopher Wong said rapid pace of depreciation amid disappointment with lack of follow-through on China stimuli could further undermine most Asian currencies.
The central banks in the Philippines and Indonesia are set to meet on Thursday. Both the Bank Indonesia and the Bangko Sentral ng Pilipinas are expected to keep their key interest rates on hold for the rest of the year, according to separate Reuters polls.
Jeff Ng, a senior currency analyst at MUFG Bank, said the rhetoric that comes out from the central bank meetings may be a factor in driving some currency performance.
Luis Limlingan, managing director at Regina Capital and Development Corp., said the market tracked the overnight performance of the US market.
Most actively traded Ayala Land Inc. was up P0.15 to 23.30. SM Investments Corp. was up P9 to P924. Bank of the Philippine Islands was up P2 to P107. Metropolitan Bank and Trust Co. was down P1.30 to P53. JG Summit Holdings Inc. was down P1.50 to P45.65. Jollibee Foods Corp. was steady at at 240. SM Prime Holdings Inc. was down P0.05 to P33.50. Ayala Corp. was down P5 to P615. Monde Nissin Corp. was down P0.31 to P7.99. International Container Terminal Services Inc. was steady at P200.
