Mexican Peso Heads for a Historic Year, Up More Than 13%
During the session, the dollar traded within a range, reaching a high of 18.0131 pesos and a low of 17.9543.
Quick overview
- The Mexican peso is set to close its strongest year on record, gaining over 13% against the dollar.
- Dollar weakness and effective management of U.S.-Mexico relations have contributed to the peso's performance.
- On the final trading day of the year, the peso strengthened slightly to 17.9781 per dollar.
- Recent U.S. labor data showed a drop in initial jobless claims, providing a final reference point for the year.
The strong performance has been driven mainly by dollar weakness and effective management of Mexico’s relationship with the United States, which has helped limit pressure from President Donald Trump.
The Mexican peso edged higher against the dollar on Wednesday morning, the final trading day of the year. The currency is on track to close its strongest year on record, posting gains of more than 13%, amid thin trading and limited data releases.
The spot exchange rate stood at 17.9781 pesos per dollar. Compared with Tuesday’s close of 17.9959, according to official data from the Banco de México (Banxico), the peso strengthened by 1.78 centavos, or 0.10%.
During the session, the dollar traded within a range, reaching a high of 18.0131 pesos and a low of 17.9543. The U.S. Dollar Index (DXY), published by the Intercontinental Exchange, was up 0.13% at 98.36 points, reflecting modest dollar strength globally.
A Standout Year for the Peso
So far this year, the peso has gained more than 13%, supported by a weaker dollar, interest-rate cuts by the Federal Reserve, and a pragmatic handling of trade and diplomatic relations with the United States. These factors have helped shield the currency from renewed political pressure linked to the Trump administration.
Final Key Data of 2025
The last major U.S. data release of the year showed that initial jobless claims fell by 16,000 to a seasonally adjusted 199,000 in the week ended December 27, well below market expectations of 220,000.
The data were released a day earlier than usual due to reduced government and market activity ahead of the New Year holiday. With liquidity thinning sharply, trading conditions remain subdued and significant market moves appear unlikely.
In this low-volume environment, the peso has found modest support, while markets digest the U.S. labor data as the final reference point of 2025.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save