The peso's weakness was caused by the strength of the US dollar and rising prices of oil, the government said Thursday.

The government is expecting the central bank ''to act decisively based on available data and intervene when necessary to reduce exchange rate volatility''.

It adds that the Marcos administration's approach ''is focused on fiscal discipline and more efficient use of public funds. '' ''This means reviewing spending proposals carefully and prioritizing programs that have high economic and social returns,'' it said.

This was announced by Palace Press Officer and Undersecretary Claire Castro disclosed this as she read a statement from Executive Secretary Ralph Recto.

After dipping to new lows in four trading sessions, the peso rebounded slightly to close at P62.52 against the US dollar from Wednesday's historic low of P62.565, according to the Bankers Association of the Philippines website,

Volume declined to $1.552 billion from $1.828 billion on Wednesday. PHS