THE peso regained its footing on Tuesday, but the stock market ended a three-day rally as investors continued to consider the odds of interest rate cuts.

The currency strengthened by 9-and-a-half centavos to P58.385 against the dollar while the benchmark Philippine Stock Exchange index (PSEi) shed 22.28 points, or 0.33 percent, to end the day at 6,667.09.

The broader All Shares index also edged lower, by 8.29 points or 0.23 percent, to 3,585.93.

The peso opened at P58.455:$1 and ranged from P58.385 to P58.52. Volume rose to P1.42 billion from the previous day's P1.095 billion.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the currency rose after an easing in local Treasury bond yields amid possible Bangko Sentral ng Pilipinas rate cuts as early as August.

"The peso also appreciated vs. the US dollar lately after higher odds for Fed (US Federal Reserve) rate cuts for 2024," he added.

Philstocks Financial Inc. research and engagement officer Mikhail Plopenio, meanwhile, said the PSEi fell "due to last-minute profit-taking after a 3-day consecutive climb."

"This Thursday's correction may imply that investors are not yet prepared to see the bourse above the 6,700 resistance level," he added.

The PSEi traded for the better part of the day in 6,700 territory but then dived just before trading ended.

"Many chose to remain on the sidelines as net market value turnover was tepid at P4.90 billion, lower than the year-to-date average of P4.96 billion," Plopenio said.

Regina Capital Development Corp. Managing Director Luis Limlingan said "local shares succumbed to profit-taking following a successive run-up of the index as investors bet that the unsuccessful assassination attempt boosted Donald Trump's chances of reclaiming the White House."

He added that "US Federal Reserve Chair[man] Jerome Powell did not comment on the specific timing of the first rate cut but noted that the second quarter inflation data had added confidence that inflation was moving sustainably down to two percent and that the risks to the two sides of the Fed's dual mandate [of keeping prices stable and promoting employment] were 'in much better balance,'" he added.

All but one of the sector indices closed in the red, with financials down the most by 1.33 percent. Property, up 1.73 percent, was the exception.

Decliners outnumbered gainers, 98 to 79, while 55 were unchanged.