The peso closed at P55.51 against the dollar on Monday from P54.87 on Thursday.

The currency's decline came as the Manila Bulletin reported that the Bangko Sentral ng Pilipinas will raise policy rates by 25 basis points on March 23.

The central bank raised policy rates by 50 basis points after inflation came in at 8.7 percent in January.

Volume at the foreign exchange portal of the Bankers Association of the Philippines (BAP) amounted to $1.332 billion from $1.109 billion.

The Philippine Stock Exchange index (PSEi) declined 86.56 points to close at 6, 599.34.

Volume reached 893.23 million shares worth P7.5 billion from Thursday's 932.40 million shares valued at P4.35 billion.

In the broader market, there were 149 declines, 55 advances and 34 unchanged.

Most active shares were led by Globe Telecom, down P49 to P1,871; BDO, up 10 centavos to P124.10; SM Prime, down P1.25 and PLDT, down P60 to P1,281. DMS