The Philippine peso retuned to the P58-to-a-dollar level on Friday after falling to a two-year low of P59 on Thursday.

The local currency closed at P58.87 on Friday, after opening at P58.95 and traded between P58.81 and P58.96, bringing the day’s weighted average to 58.90.

The volume of trade went up to $1.07 billion from $842.68 million on Thursday.

"The recent depreciation of the peso against the dollar is about a strong US dollar story due to the rising geopolitical tensions," the Bangko Sentral ng Pilipinas (BSP) said in a statement.

"The peso traded in line with the regional currencies we benchmark against," it added.

According to analysts, the peso has been affected due to uncertainties on the next moves of the US Federal Reserve and the BSP on monetary easing.

As for geopolitical tensions, these are caused by the ongoing Russia-Ukraine war and the escalation of the conflict in the Middle East.