The Bangko Sentral ng Pilipinas said it will support the weakened peso when necessary.

"There are factors that weakened the peso. How long this will last is anybody's guess," BSP Governor Felipe Medalla told the Daily Tribune. "But we will intervene when called for. Of course, I can't tell how much and the timing."

Medalla said that it's hard to imagine a scenario where US policy rates (and T-Bill yields) are lower than BSP's.

For his part, Michael Enriquez, president and chief investment officer of Sun Life Investment Management and Trust Corp. told the Tribune that "slower demand from corporate for importation helped the recent appreciation of the peso. We also expect the BSP to start strictly monitoring dollar purchases for investments."

However, the Fed is expected to raise rates again in November which can help resume the depreciation in case the BSP won't raise at the same magnitude, the economist added.

Peso made stable

Moreover, Rizal Commercial Banking Corp. chief economist Michael Ricafort said "the peso exchange rate started to stabilize in the latter part of the week after the BSP tightened the reporting requirements on foreign exchange transactions."

"Possible further local policy rate hikes, more intervention in the local foreign exchange market; siphoning off more pesos from the financial system to reduce the pesos used to purchase dollar; greater monitoring of foreign exchange transactions; among other measures to support the peso, could be used in the policy toolkit, all of which could help stabilize the peso exchange rate, as well as overall inflation," Ricafort added.