The Philippine peso closed the 28 November trading day at P56.64 against the US dollar.

The currencies traded between P56.80 and P56.64.

As of 28 November, the local peso's average level stood at P56.796 to the dollar. Volume of trade amounted to $806.90 million, higher than 25 November's $849 million.

The US dollar again eased for the fourth straight trading day by -0.03 or -0.05 percent.

After increasing for eight consecutive months, the greenback weakened for the second straight month by -1.33 or -2.3 percent.

'Peso has stabilized'

A senior Bangko Sentral ng Pilipinas official said the peso may have reached a stable level.

"It has now stabilized to this level, and we expect it to moderate over the next few months," said BSP Monetary Board member V. Bruce J. Tolentino in a recent event hosted by the Rural Bankers Association of the Philippines.

Tolentino attributed the stable exchange rate to aggressive BSP action.

However, he said inflation continues to be worrisome. "We expect it will start to go down with the Christmas season, but this is still way beyond the BSP's policy band of 3 ±1," Tolentino said.

Just this November, the Monetary Board had to raise interest rates quite aggressively by 75 basis points.

Tolentino said the MB would continue monitoring closely what is happening with the US Federal Reserve.

"[Whether we] like it or not, we are heavily affected by what happens in the US. And [mainly because] most of [the] global trade is denominated in dollars. So, we need to accommodate whatever's going on in the US," Tolentino explained.