MANILA, Jan. 7-- The Philippine peso and other Asian currencies have weakened at the start of the year due to the strengthening of the U.S. dollar in anticipation of the improvement of the U.S. economy.

On Monday, the first trading day of the year at the Philippine Dealing System, the Philippine peso weakened to a five-week low of 45 pesos to 1 U.S. dollar.

The peso last hit this low in Nov. 20, 2014.

"The dollar was on the offensive early in the year, strengthening against most risk currencies as players unloaded the euro in favor of the dollar," Nicholas Antonio Mapa, associate economist at the Bank of the Philippine Islands, was quoted as saying in a report.

On Wednesday, the buying rate for 1 U.S. dollar was 45.128 pesos.

Major currencies in the Asian region also weakened at the beginning of the year.

A report published in the Asia First Newsletter on Monday said the Taiwanese dollar dropped 0.6 percent on Jan. 5, its weakest valuation since September 2010.

The Indonesian rupiah and the Malaysian ringgit also posted a drop of 0.6 percent each due to the strengthening of the U.S. dollar.

The report said the Korean won and the New Zealand dollar fell 0.5 percent each as the U.S. dollar index rose 0.4 percent early Monday to a new nine-year high of 91.36.

The Japanese yen was the only major currency to register a rise against the U.S. dollar, the report said.

Governor Amando Tetangco Jr. of the Bangko Sentral ng Pilipinas (BSP), the country's central bank, said an improving U.S. economy, coupled with expectations that its central bank, the Federal Reserve, will end its easy monetary policy this year helped create a sound base for an outlook for a strong dollar, causing emerging market economies to revert to depreciation mode.

Also at the start of the year, the Philippine Stock Exchange Index opened with positive signs, closing on Monday at 7,276.63 points, up by 0.64 percent or 46 points, buoyed by reports that December inflation was lower than expected.

The market expects brighter prospects this year after outperforming other markets in the region last year.

"I hope that 2015 will be the year when we see more of our countrymen reap the benefits of investing in the stock market. I am optimistic that we can help bring financial freedom to more Filipinos," PSE Chairman Jose T. Pardo said in his welcome remarks at the start of PSE trading after the long holidays in the Philippines.

On last year's last trading day, the PSE increased by 0.62 percent or 44.25 points to 7,230.57.

Meanwhile, the National Economic and Development Authority ( NEDA), the country's top economic policy making body, said the Philippine government is still wary of inflation risks this year.

NEDA Director General Arsenio Balisacan said the government is seeing price pressures that will arise with higher water rates at the start of the year and the impact of destruction brought by typhoons Ruby and Seniang (international name: Jangmi) on prices of agricultural commodities.

"Given the lingering possibility of El Nino occurrence in the first quarter of 2015, we should intensify efforts to implement programs that will help the areas that are highly and moderately vulnerable to the adverse impact of a dry spell," he said.

Balisacan, who is also the socioeconomic secretary, said logistical issues continue to pose risks of inflation.

"The easing of the truck ban in Manila's ports may have contributed to temper last year's inflation rate but it is critical to continue exploring a more lasting solution to the congestion problem to avoid future disruptions in the domestic supply chain that could result in higher transportation costs," he said.

For his part, Tetangco said the risks to inflation are broadly balanced, and the outlook is for inflation to be within the national government target range of 2 percent to 4 percent.

He said lower world oil prices should continue to counterbalance pending hikes on transport fares and utility charges.

The Philippine Statistical Authority reported that the country' s average headline inflation rate for 2014 was recorded at 4.1 percent or within the 3-percent to 5-percent target range of the government.

"Our assessment for the time being is that the stance of policy is appropriate, but we are ready to make adjustments as needed to ensure our inflation objectives are met," Tetangco said.

He said the BSP met its inflation target for six consecutive years, adding that the average headline inflation rate for 2014 was also lower than the BSP's 4.4 percent forecast for the year.