MANILA - The peso weakened on Thursday to close at a fresh 10-year low as chances of another interest rate hike in the US continued to rise.

The peso closed at P50.31 against the dollar, the lowest level since it closed at P50.32 to $1 on September 26, 2006.

Investors are likely to focus on the outcome of the US Federal Reserve meeting scheduled this month, Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. said.

"The market may turn its focus again on the Fed and expectations of its next moves. The peso and other emerging market economies currencies would likely trade in a relatively narrow band until more clarity comes from US policy makers," he said.

The peso is seen to move within the P50.20 to P50.40 range due to US President Donald Trump's safe speech and bets of balanced US economic data, Land Bank of the Philippines market economist Guian Angelo Dumalagan said.

Another analyst, ING Bank Manila chief economist Joey Cuyegkeng, said the peso would remain trading between P50.10 and P50.40 as the market awaits the outcome of the Fed meeting.

"Currency markets of not only the peso but also of other Asian currencies are reflecting the higher likelihood of a US Fed rate hike at its mid-March meeting. US interest rate overnight were higher to reflect hawkish statements from key and voting members of the FOMC," Cuyegkeng said.