Philippine peso plunges to 29-month lows: Remittance windfall alert for OFWs

Manila: The Philippine peso has suffered on Friday its worst single-day fall in nearly three years.

The local currency slumped to a 29-month low as it closed at ₱58.186 per dollar on Friday (August 1, 2025), according to Bangko Sentral ng Pilipinas (BSP) data.

Earlier in the day, the peso traded as weak as ₱58.06 versus the greenback, deepening from Thursday’s close of ₱57.306.

So, iImagine you’re an OFW who sent $1,000 home on May 2, 2025, when every greenback turned into ₱55.933.

Your family would get ₱55,933 — a solid sum, no doubt. But fast forward to August 1, 2025, and the peso’s hibernated: now a single buck bags you ₱58.186.

Send the same $1,000, and boom — your loved ones pocket a cool ₱58,186.

That’s a difference of ₱2,253 for every $1,000 you send, just thanks to currency swings.

So, while the peso’s woes might hurt importers, OFWs and their families get a surprise bonus, bringing extra sizzle to remittance day (maybe treat everyone to some halo-halo or a Sunday lechon feast, or perhaps buy an emergency-day insurance for a loved on).

The sudden slide came after the US Federal Reserve kept interest rates unchanged in the 4.25-4.5% range for a fifth straight meeting, with Chair Jerome Powell offering no hints about when borrowing costs might come down. 

Dollar turbocharged

These "hawkish" comments and strong US economic data turbocharged the dollar, leaving the peso and other emerging market currencies limping in its wake.

Heavy trading volume followed Thursday’s announcement, reflecting market anxiety as investors digested news the Fed would not ease up on rates.

Meanwhile, data from the Bankers Association of the Philippines showed the peso shedding 35.5 centavos from its previous finish to close at ₱57.085 on Thursday.

Currency traders cited Powell’s remarks for dashing hopes of a near-term rate cut and emboldening dollar bulls.

With the peso now trading outside the Marcos administration’s target band of 56-58, pressure on prices could intensify as a weaker peso makes imports more expensive.

The BSP, maintaining a dovish stance, noted that despite upward pressures from fuel and food prices, inflation remains relatively subdued and another rate cut is "on the table" for the Monetary Board’s August meeting.

Still, the peso’s steady slide — down 3.42% over the past month — has analysts and policymakers watching closely for knock-on effects on inflation and economic growth.