MANILA (Reuters) -- President Gloria Macapagal Arroyo ended a week-old state of emergency in the Philippines on Friday, as widely expected, after her security chiefs said the threat from coup plotters had receded.

Two small bombs exploded in Manila about 75 minutes before Arroyo's taped announcement was broadcast, briefly raising fears that the president might extend emergency rule.

There were no casualties or major damage from the blasts near the headquarters of an elite police team and a shopping area in the upmarket Ortigas district. Police said the explosions were caused by crude devices and were no cause for alarm. "I firmly believe that order has been restored," Arroyo said on radio and television. "I declare that starting now, the state of emergency no longer exists."

Financial markets had priced in an imminent lifting of the emergency order but were rattled slightly by the blasts.

The peso weakened to 51.26 per dollar from 3-1/2-year highs around 51.13 before recovering to 51.19. The main stock index closed 0.34 percent lower.

"I don't see these political events having that much impact," said George Worthington, chief economist for Asia-Pacific at IFR Thomson Financial. "Was this a ploy to shore up Arroyo's support? There could be a number of scenarios that could be the cause. Unless there is a successful coup, the market tends to shrug these things off."

Arroyo, who survived an impeachment attempt last year over allegations of vote-rigging and graft, invoked the emergency last Friday to confront what she said was a conspiracy of opposition foes, communist groups and "military adventurists" to oust her. But she had come under pressure from her vice-president, economic team, foreign investors and the U.S. State Department to lift the order as soon as possible. ------------------------------------- Political enemies

Including the plot against Arroyo, there have been well over a dozen attempts to seize power from presidents since the late dictator Ferdinand Marcos was chased out of the country by a "people power" revolt 20 years ago.

Critics and many analysts saw Arroyo's reaction as excessive and suspected her of ramping up the alleged conspiracy to allow security forces wider scope to clamp down on her opponents.

"It is important that our political enemies and opportunists stop troubling the economy and embarrassing the Philippines because of their nonsense shows," Arroyo said. "I will never allow this kind of adventurism."

Three people have been charged with rebellion, including Gregorio Honasan, a former colonel and senator linked to most of the coup plots since Marcos fell in 1986.

In the last week, several senior officers from elite units were removed, a pro-opposition newspaper raided and troops sent to watch over two television stations.

Police want charges filed against 13 other leftist lawmakers and soldiers. They also have a list of more than 50 communist rebel and political leaders accused of rebellion in the past.

Arroyo, an economist, has won guarded praise from investors for her efforts to bring in more revenues and cut government debt of nearly $76 billion. But higher taxes, persistent graft and the allegations of wrong-doing have not endeared her to the masses.

Arroyo's security chiefs lowered alert levels from maximum on Thursday and said the threat of a coup had subsided.

"She has consolidated her hold on power, but it does not mean that she has crushed the opposition," said Earl Parreno of the Institute for Political and Electoral Reforms.