The peso slumped to a new record low against the US dollar on Wednesday, a day before the central bank's policy-setting body decides whether to increase the currency.

The peso finished at P63.361, lower than the intraday low of P63.373. On Tuesday, the peso ended at P63.09 for the second day.

The erstwhile P63.09 was the previous low of the peso vs the dollar. The peso has been under pressure for October, mainly due to increased US interest rates, which boosts the dollar, and the Middle East situation.

Emmanuel Leyco, an economist at the Credit Rating and Investors Services Philippines, told OneNewsPH's Money Matters that last time the Monetary Board decided to raise interest rate by 25 basis points to 5 percent, which is below the inflation rate of 7.2 percent. PHS