Mexican Peso Keeps Winning Streak Alive Against the Dollar

he dollar traded between a high of 18.3307 and a low of 18.2762, the peso’s firmest level since late September.

Written by: Ignacio Teson • Wednesday, November 12, 2025 • 1 min read

• Last updated: Wednesday, November 12, 2025

Quick overview

The Mexican peso strengthened for the fifth consecutive day, closing at 18.3100 pesos per dollar.
The currency reached its strongest level in six weeks as U.S. lawmakers prepared to vote on a funding package to end the government shutdown.
The peso's appreciation is supported by carry trade demand and increased risk appetite among investors.
Analysts suggest that the reopening of U.S. government operations may lead to further Federal Reserve rate cuts, enhancing the peso's attractiveness.

The Mexican peso strengthened slightly against the dollar on Wednesday, marking its fifth straight day of gains. The local currency briefly touched its strongest level in six weeks as U.S. lawmakers prepared to vote on a funding package to end the longest government shutdown in U.S. history.

The exchange rate closed at 18.3100 pesos per dollar, a marginal 0.03% appreciation from Tuesday’s 18.3150, according to data from Banxico. The dollar traded between a high of 18.3307 and a low of 18.2762, the peso’s firmest level since late September. Meanwhile, the U.S. Dollar Index (DXY) rose 0.14% to 99.62 points.

USD/MXN

Shutdown Relief Boosts Sentiment

After the Senate passed a government funding bill earlier this week, the House of Representatives prepared to vote on it, potentially bringing the historic shutdown to an end. The prospect of reopening federal agencies — including those that publish key labor and inflation data — has lifted risk appetite and supported emerging-market currencies.

Fed Outlook and Carry Trade Demand

According to analysts, the peso’s strength continues to be fueled by carry trade demand and a renewed appetite for risk. The reopening of U.S. government operations could reinforce expectations of further Federal Reserve rate cuts, keeping the peso attractive among emerging-market peers.

Early in the session, the peso briefly broke below the 18.30 support level, opening the door to test its year-to-date low near 18.20.

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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.