The peso closed at P56.15 against the US dollar on Thursday after it reached its all-time low of P56.45 in early trading.

This ensued as Bangko Sentral ng Pilipinas Gov. Felipe Medalla said on Thursday morning that the Monetary Board announced a 75 basis points increase in its policy rates. Traders said it was a surprise decision by the authorities.

On Wednesday, the peso closed at P56.26 against the US dollar.

Volume at the foreign exchange portal of the Bankers Association of the Philippines surged from $994 million to $1.655 billion.

The Philippine Stock Exchange index ended 7.24 points lower to 6, 248.13.

In the broader market, there were 124 declines, 69 advances and 34 unchanged.

Volume amounted to 680.44 million worth P5.3 billion from Wednesday's 1.28 billion valued at P5.55 billion.

Most active shares were led by Ayala Land, down 60 centavos to P23.80; SM Investments Corp., down P21.50 to P775.50; ICTSI, up P3.70 to P186.50 and Universal Robina Corp., down P1.80 to P115. DMS