MANILA - The Philippine peso slipped further to the dollar on Wednesday, hitting a new record low for the fourth straight trading day as the greenback continued to rally, data from the Bankers Association of the Philippines showed.

The peso closed at P57.135 to a dollar, after trading as low as P57.33, BAP data showed.

The peso on Tuesday closed at P57 to a dollar.

The peso is affected by the US dollar rally, Bankers Association of the Philippines Managing Director Benjamin Castillo said.

"My observation is that the strength of USD has a global impact, the PHP is not exempted. We also do not have the same level of USD lending as we had in earlier crises," he said.

Global geopolitical uncertainties are among the factors that affect the peso, including the Ukraine war as well as the row between China, US and Taiwan, MUFG Bank Currency Analyst for Global Markets Research Sophia Ng told ANC.

The yen and the euro are also trading weaker versus the dollar.

“The dollar will prop up naturally. Again the dollar is key and we have ongoing geopolitical tensions whether the Ukraine War or the geopolitical tensions between China, Taiwan and the US, other factors supporting the US dollar,” Ng said.

Ng said the Bangko Sentral ng Pilipinas is widely expected to raise interest rates in its next policy meeting due to inflation and the weakening currency.

"I would still say there will still be rate hikes. It's just a matter of magnitude," she said.

• New all-time low: Peso weakens further to P56.999 per dollar on Sept. 5
• Philippine peso plunges to all-time low of P56.77 vs US dollar

Some analysts expect the dollar to decline a bit more. But others have also said it could get some support from the seasonal increase in remittances during the holiday season.

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