⚡Crypto Alert : Altcoins are up 28% in just last month! Unlock gains and start trading now - Click Here

The Mexican peso gains ground for a second session following Banxico’s announcement.

The peso extends its advance after Banxico kept rates unchanged and revised upward its inflation outlook until late 2025.

The Mexican peso is trading with gains this Friday morning. The local currency is gaining ground, extending the advance observed yesterday following the monetary policy announcement from the Bank of Mexico (Banxico), which maintained its rate and raised the inflation expectation.

BrokerReviewRegulatorsMin DepositWebsite
🥇Read ReviewASIC, FSA, CBI, BVI, FSCA, FRSA, CySEC, ISA, JFSAUSD 100Visit Broker >>
🥈Read ReviewFMA, FSAUSD 50Visit Broker >>
🥉Read ReviewFSCA, CySEC, DFSA, FSA, CMAUSD 0Visit Broker >>
4Read ReviewCySEC, MISA, FSCAUSD 5Visit Broker >>
5Read ReviewFCA, CySEC, FSCA, SCBUSD 100Visit Broker >>
6Read ReviewFCA, FINMA, FSA, ASICUSD 0Visit Broker >>
7Read ReviewCySEC, FCA, FSA, FSCA, Labuan FSAUSD 100Visit Broker >>
8Read ReviewCBCS, CySEC, FCA, FSA, FSC, FSCA, CMAUSD 10Visit Broker >>
9Read ReviewASIC, CySEC, FSCA, CMAUSD 100Visit Broker >>
10Read ReviewIFSC, FSCA, ASIC, CySECUSD 1Visit Broker >>

The spot exchange rate is at the level of 16.7651 units per dollar. Compared to a rate of 16.7926 units yesterday, based on Banxico’s official data, this represents a gain of 2.75 cents, equivalent to a 0.16% change.

The dollar price moves in an open range between a high of 16.8200 pesos and a low of 16.7383 pesos. The Dollar Index (DXY), from the Intercontinental Exchange, which measures the greenback against a basket of six currencies, rises 0.05% to 105.28 points.

USD/MXN

The peso extends its advance after Banxico kept rates unchanged and revised upward its inflation outlook until late 2025, which would imply a more prolonged period with a wide interest rate differential.

For a while now, the peso has benefited from the attractive differential between Mexico’s rates (11%) and the United States’ (5.25%-5.50%), which promotes a continuous flow of funds into the country and led it to touch its best level since 2015 last month.

Analysts agree that now investors are focused on the upcoming release next week of an anticipated inflation report in the United States, which will help anticipate the Federal Reserve’s next steps.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Ignacio Teson
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.
Related Articles