THE peso and stock market fell anew on Tuesday with sentiment said to have fallen ahead of a US Federal Reserve policy meeting.

The currency weakened by 13.4 centavos to P58.645 against the dollar, while the benchmark Philippine Stock Exchange index (PSEi) shed 42.87 points, or 0.64 percent, to 6,606.36 at the end of the day.

The broader All Shares also fell, by 17.56 points or 0.49 percent, to 3,587.77.

The currency opened trading at P58.6:$1 and ranged from P58.58 to P58.695. Volume rose to P1.229 billion from P924 million in the previous session.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso depreciated after the dollar gained against major global currencies.

The PSEi's fall to near three-week lows from two-month highs also weighed on the currency, he added.

Philstocks Financial Inc. research and engagement officer Mikhail Plopenio, meanwhile, said "the local market dropped as investors worry over the local currency, which has been showing signs of weakening against the US dollar."

"Many are cautious ahead of the policy decisions of the Bank of Japan and the Federal Reserve, which are set this week," he added.

"The Department of Budget and Management's projection that the national debt will increase by 8.08 percent year on year to P17.35 trillion by end-2025 [also] weighed on the sentiment," he continued.

Regina Capital Development Corp. Managing Director Luis Limlingan, for his part, said the PSEi fell following mixed results on Wall Street ahead of the Fed's July 30-31 meeting.

"The Fed's two-day meeting begins Tuesday, where Chief Jerome Powell may signal upcoming rate cuts," he noted, adding that this "could influence the Bangko Sentral ng Pilipinas' (BSP) rate decision."

Signals from the BSP that it could start cutting interest rates in August, ahead of the Fed that is expected to do so in September, have been blamed for the peso's decline.

Sectoral results, meanwhile, were mostly lower on Tuesday, with services and industrial — up 0.55 and 0.05, respectively — the only gainers. Financials dropped the most by 1.62 percent.

Decliners outnumbered gainers, 118 to 74, while 43 were unchanged.