Mexican Peso Slips Against the Dollar, Ending Winning Streak

Despite Thursday’s pullback, the peso remains supported by the interest rate differential and overall dollar weakness.

Written by: Ignacio Teson • Thursday, September 18, 2025 • 1 min read

• Last updated: Thursday, September 18, 2025

Quick overview

The Mexican peso depreciated against the U.S. dollar, closing at 18.3805 per dollar, ending an eight-session winning streak.
This decline followed the Federal Reserve's interest rate cut, which strengthened the dollar and increased the U.S. Dollar Index by 0.50%.
Despite the pullback, analysts expect the peso to remain supported by interest rate differentials and predict it will trade between 18.20 and 18.60 in the coming days.
Mexican equities also fell, with the S&P/BMV IPC index dropping 0.44% and Televisa leading the losses with a 3.50% decline.

The Mexican peso depreciated against the U.S. dollar on Thursday, ending its recent winning streak, as the greenback strengthened following the Federal Reserve’s interest rate cut.

The peso closed at 18.3805 per dollar, down 0.34% or 6.19 cents from Wednesday’s close, according to Banco de México (Banxico). This ended an eight-session run of gains for the currency.

The U.S. Dollar Index (DXY), which measures the greenback against a basket of six major currencies, rose 0.50% to 97 points. The peso’s depreciation followed the Fed’s decision to cut its benchmark rate by 25 basis points to a range of 4.00%–4.25%, a move widely anticipated by markets.

USD/MXN

Despite Thursday’s pullback, the peso remains supported by the interest rate differential and overall dollar weakness, though it remains sensitive to headlines. Analysts see the currency trading in a range of 18.20 to 18.60 in the coming days. Overnight, the peso is expected to fluctuate between 18.29 and 18.43 per dollar, pending Friday’s release of Mexico’s aggregate supply and demand report.

Mexican Stock Market Retreats

Mexican equities fell on Thursday, snapping a three-day winning streak after hitting record highs earlier in the week.

The benchmark S&P/BMV IPC index dropped 0.44% to 61,323.95 points, while the FTSE BIVA index declined 0.54% to 1,228.99 points.

Most stocks in the main index closed lower. Televisa led the losses with a 3.50% drop to 9.98 pesos per share, followed by miner Peñoles, down 3.15% to 711.01 pesos, and real estate firm Vesta, which fell 1.81% to 48.64 pesos.

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ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.