The Philippine Peso on Monday closed slightly weaker at P58.58 against the US Dollar.

The trading opened at P58.50, with a high of P58.59 and a low of P58.45, data from the Bankers Association of the Philippines show.

The local currency's average also stood at P58.501, with a volume of $574.2 million.

Analysts said the greenback corrected slightly higher against the local currency for the third day by +0.03 or +0.05 percent to close at P58.58 on Monday despite the latest month-on-month increase in the gross international reserves.

The US dollar also slightly corrected higher against major global currencies after the financial markets were pricing in another but smaller +0.50 Fed rate hike on 14 December and a peak Fed rate at a little over 5.00 percent by early 2023.

Monday's closing rate is still among the lowest in more than a month since 23 September, when it closed at P58.50.

Nevertheless, the local currency still eased from the record-high closing rate of P59.00 posted on October 3, 10, 13, and 17, 2022.

The peso exchange rate also remains relatively stable for the sixth straight week already, below the P59.00 record high.

Sought for comment, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the relatively stable peso exchange rate was brought about by signals on local policy rate hikes of as much as +0.75 on the next rate-setting meeting on 17 November.

"The latest signals of possibly matching future Fed rate hikes if inflation remains high) and local policy rate hikes of at least +1.00 for the rest of 2022, alongside other measures, would all help support/stabilize the peso exchange rate and overall inflation," Ricafort told The Daily Tribune.

However, he noted that the relatively weaker peso in recent months could still increase the possibility of further local policy rate hike/s and more intervention in the local foreign exchange market.

"[We also expect the] next seasonal surge in OFW remittances and conversion to pesos (compulsory in nature) will be in preparation for the holidays in December 2022, especially a few days/weeks before the Christmas and New Year holidays," added Ricafort.