On Friday, the Philippine peso fell to a one-week low, while most other regional Asian currencies traded within narrow ranges. Meanwhile, stock markets in South Korea and Singapore surged to historic peaks.

The Philippine peso declined by 0.3%, reaching its lowest level since February 12. This movement followed the central bank's decision on Thursday to cut interest rates by 25 basis points. The rate cut had largely been anticipated by the market and did not trigger immediate volatility.

However, caution prevailed among investors after the central bank governor indicated that the future direction of policy would depend on the pace of economic confidence recovery.

Radhika Rao, a senior economist at DBS Bank, commented, "The rate cut by the Philippine central bank was accompanied by cautious guidance, reflecting an economic recovery weaker than expected, softer confidence indicators, and delays in government spending."

So far this week, the peso has gained 0.4%, positioning it to end a four-week losing streak.

Analysts also highlighted that rising oil prices could negatively affect Asian currencies, particularly the Philippine peso.

Abbas Keshvani, an Asian macro strategist at RBC Capital Markets, noted, "Since the beginning of the year, Brent crude prices have increased by approximately $10 per barrel, which slightly weakens the bullish outlook for Asian foreign exchange."

He added, "Most major economies in the region are net oil importers, especially Thailand, India, South Korea, and the Philippines. If energy prices remain elevated, the peso will face greater depreciation pressure."

In other Asian markets, the Indonesian rupiah fell 0.2% during early trading but quickly recovered its losses and traded flat.

Indonesia and the United States signed a reciprocal trade agreement on Friday, with the U.S. maintaining a 19% tariff on Indonesian export goods.

Other regional currencies lacked upward momentum, with several expected to close the week lower.

The Singapore dollar has fallen 0.6% this week, on track for its worst weekly performance since mid-November. The Thai baht has declined 0.4% so far this week.

In equity markets, South Korea's benchmark stock index rose more than 2%, reaching a record high. After leading global major stock market performance in 2025, the index has gained 5.3% so far this week.

Singapore's benchmark index climbed as much as 0.5%, also hitting a historic high, before paring gains to trade flat.

The index has advanced 1.4% this week, poised for its best weekly performance since mid-January. It is also set to mark a ninth consecutive week of gains.

Stock markets in Indonesia and the Philippines traded flat but are expected to end the week higher.

Thailand's stock market fell 0.6%, yet it remains on track for a 3.4% weekly gain, extending its winning streak to a sixth consecutive week.