MANILA – (3rd UPDATE) The peso breached the P51 level against the dollar on Friday, as concerns over nuclear tensions between the US and North Korea weighed on world markets.

The peso weakened to P51.08 in early trading, its lowest since August 2006, according to data from Bloomberg. It opened at P50.90 from Thursday's close of P50.795.

It closed at P50.98.

"We're constantly monitoring peso developments for excessive short-term volatility not consistent with underlying economic fundamentals and take appropriate action when necessary," Bangko Sentral ng Pilipinas Governor Nestor Espenilla told reporters.

"We recognize that the market is also often self-correcting," he said.

The peso has hovered at its lowest levels in 11 years in recent weeks as imports put pressure on the local currency.

• Asia stocks, dollar brace for further slide as US, North Korea tensions intensify

Presidential Spokesman Ernesto Abella said the peso's decline was "nothing to be worried about," adding it was "part of the economic cycle."

"Our economic fundamentals are still strong," Abella said. -- with a report from Dharel Placido, ABS-CBN News