Mexican Peso Gains Slightly After Christmas

The Mexican peso strengthened in a session of light trading, as market participants remained focused on the outlook for interest rates and developments involving Donald Trump.

The exchange rate closed the session at 20.1962 pesos per dollar, compared to yesterday’s closing level of 20.2240 pesos, according to official data from the Bank of Mexico (Banxico). This movement represented a gain of 2.78 cents or 0.14% for the local currency.

The dollar fluctuated within a range, reaching a high of 20.2190 pesos and a low of 20.1236 pesos. Meanwhile, the U.S. Dollar Index (DXY) from the Intercontinental Exchange, which tracks the greenback against a basket of six major currencies, rose 0.14% to 108.19 points.

Mexican Peso Outlook and Context

Traders exhibited a sense of calm as the holiday season began, despite an economic outlook for 2025 that includes the anticipated return of Donald Trump to the White House and a less accommodative monetary policy from the Federal Reserve.

Last week, the Fed cut interest rates by a quarter of a percentage point, as the market had expected, but signaled that it would slow the pace of reductions in the coming year. In Mexico, Banxico also lowered its benchmark rate and hinted at the possibility of further adjustments.

Remember, you can access all our live rates on FXLeaders to track the Mexican peso in real time!

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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.
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