Mexican Peso Pares Losses After Banxico Release
The U.S. Dollar Index (DXY), from the Intercontinental Exchange, which measures the dollar against six major currencies, rose 0.14% to 97.8.
Quick overview
- The Mexican peso slightly weakened against the dollar, ending the session at 17.1950 pesos per dollar.
- Banxico raised its 2026 economic growth forecast for Mexico to 1.6%, helping the peso trim its losses.
- U.S. initial jobless claims rose to 212,000, while Mexico experienced a significant drop in employment in January.
- The peso's decline was attributed to broader negative sentiment in global markets, increasing demand for the dollar.
The Mexican peso trimmed its losses after Banxico raised its 2026 economic growth forecast for the country to 1.6%.
The Mexican peso weakened slightly against the dollar in Thursday’s trading. The currency lost ground in a market digesting labor reports, while domestically the focus was on the quarterly report from the Banco de México (Banxico).
The exchange rate ended the session at 17.1950 pesos per dollar, compared with 17.1579 at the previous close, according to official Banxico data. That represented a loss of 3.71 centavos, or 0.22%, for the peso.
During the session, the dollar traded within a range of 17.2755 at the high and 17.1540 at the low. The U.S. Dollar Index (DXY), from the Intercontinental Exchange, which measures the dollar against six major currencies, rose 0.14% to 97.80 points.
U.S. and Mexican labor data
Initial jobless claims in the United States increased by 4,000 to a seasonally adjusted 212,000 in the week ended February 21, according to the U.S. Department of Labor. Economists had expected 215,000 claims.
On the domestic front, Mexico’s employment fell in January by 705,427 jobs compared with December, according to data released by the INEGI, with most of the losses occurring in formal employment. This was the second-worst January figure since the pandemic.
On the day, the peso posted a modest decline as the dollar stabilized, while investors absorbed the local employment report. Technical analysts placed support at 17.12 pesos and resistance at 17.27. Others linked the peso’s weakness to broader negative sentiment in global markets, which boosted demand for the dollar as a safe haven. Overall, emerging-market currencies reflected a defensive tone.
Expectations support the peso
The peso managed to pare losses after Banxico announced an upward revision to its 2026 GDP growth forecast to 1.6%, from the previous 1.1%, citing stronger-than-expected economic performance in the fourth quarter of 2025.
“Although the expected dynamics for economic activity are similar to those in the previous report, the better-than-anticipated GDP performance in the final quarter of 2025 generates a higher arithmetic base effect for growth,” the central bank said.
- 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
- Read our latest reviews on: Avatrade, Exness, HFM and XM
Save