Mexican Peso Strengthens Against the U.S. Dollar Following Local Inflation Data

The U.S. Dollar Index (DXY), which measures the greenback against six major currencies, inched up 0.05% to 98.96 points.

Written by: Ignacio Teson • Thursday, October 23, 2025 • 1 min read

• Last updated: Thursday, October 23, 2025

Quick overview

The Mexican peso appreciated against the U.S. dollar, closing at 18.3952 pesos per dollar.
Local inflation figures came in below expectations, with headline inflation at 3.63% and core inflation at 4.24%.
Traders are awaiting the U.S. consumer price report, which could influence future monetary policy decisions.
The softer inflation data supports the possibility of further rate cuts by Banxico.

The Mexican peso advanced against the U.S. dollar on Thursday, as markets digested local inflation figures that came in below expectations and awaited tomorrow’s U.S. consumer price report.

The exchange rate closed at 18.3952 pesos per dollar, compared with 18.4479 pesos yesterday, according to official data from the Bank of Mexico (Banxico). The move represents an appreciation of 5.27 centavos, or 0.29%.

During the session, the dollar traded between a high of 18.4537 pesos and a low of 18.3822. The U.S. Dollar Index (DXY), which measures the greenback against six major currencies, inched up 0.05% to 98.96 points.

USD/MXN

Market Outlook and Drivers

The dollar edged higher against most peers as traders waited for U.S. consumer inflation data, set to be released despite the ongoing government shutdown aimed at funding Social Security adjustments for 2026. While the Federal Reserve’s focus has shifted slightly from inflation to labor-market conditions, tomorrow’s figures will be closely watched as the first major reference point ahead of the next monetary policy meeting.

Locally, traders reacted to mid-October inflation data, which slowed more than expected and reinforced expectations for further rate cuts. Headline inflation eased to 3.63%, while core inflation—excluding volatile food and energy components—fell to 4.24%, its lowest level since the first half of August.

The softer-than-expected reading keeps the door open for Banxico to extend its gradual easing cycle following last month’s 25-basis-point cut.

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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.