Mexican Peso Slides: Rough Week for MXN

Compared to last Friday’s close of 18.3899, the peso posted a weekly loss of 5.12 centavos, or 0.28%.

Written by: Ignacio Teson • Saturday, October 25, 2025 • 1 min read

• Last updated: Saturday, October 25, 2025

Quick overview

The Mexican peso weakened against the U.S. dollar, closing at 18.4411 pesos per dollar, a decline of 0.25%.
The U.S. Dollar Index slipped 0.03% to 98.91 points amid a technical pullback for the peso.
U.S. Consumer Price Index data showed a 0.3% increase in September, with inflation at 3.0%, both below expectations.
Futures traders are pricing in a 96.7% probability of a 25-basis-point rate cut at the Fed's upcoming meeting.

The Mexican peso weakened against the U.S. dollar in Friday’s trading. The local currency retreated in a technical pullback after gaining support from a softer dollar and renewed bets on Federal Reserve (Fed) interest-rate cuts.

The exchange rate closed at 18.4411 pesos per dollar, compared with 18.3952 yesterday, according to data from Banco de México (Banxico). The move represented a decline of 4.59 centavos, or 0.25%, for the peso.

During the session, the dollar traded between a high of 18.4641 and a low of 18.3434 pesos. The U.S. Dollar Index (DXY), which measures the greenback against a basket of six major currencies, slipped 0.03% to 98.91 points.

USD/MXN

U.S. Consumer Price Index (CPI) data showed a 0.3% increase in September, according to the Bureau of Labor Statistics. On a 12-month basis, inflation rose 3.0%, with both readings coming in below expectations.

These figures mark the first major economic release since the U.S. government entered a shutdown—now at 23 days—which has halted the publication of key labor market indicators used to guide monetary policy.

According to CME’s FedWatch tool, futures traders are pricing in a 96.7% probability of a 25-basis-point rate cut at the Fed’s upcoming meeting scheduled for October 28–29.

After gaining earlier in the day, the peso reversed course to end lower. Compared to last Friday’s close of 18.3899, the peso posted a weekly loss of 5.12 centavos, or 0.28%.

Recent price action suggests the exchange rate has entered a consolidation phase within a 18.30–18.60 channel. Oscillation indicators show diminishing downward pressure on the currency.

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

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.