MANILA, Philippines -- The central bank said on Thursday it was "providing liquidity" in the currency market to help stabilize the peso as it hovered at two-year lows.

"We are in the market to minimize volatility in the exchange rate," deputy governor Diwa Guinigundo told reporters."

Traders said the central bank was selling dollars for the past two days to prevent the currency from falling through the 50 per dollar psychological barrier. The peso closed in local trading on Thursday at 49.999 to the dollar.