Mexican Peso Rallies as U.S. Shutdown Nears an End

During the day, the dollar traded between 18.3986 and 18.3128 pesos. The Dollar Index (DXY) fell 0.31% to 99.32 points.

Written by: Ignacio Teson • Wednesday, November 12, 2025 • 1 min read

• Last updated: Wednesday, November 12, 2025

Quick overview

The Mexican peso strengthened for the fourth consecutive session, closing at 18.3150 pesos per dollar.
This appreciation followed the U.S. Senate's approval of a bill to end the longest government shutdown in history.
Analysts anticipate a gradual recovery in Mexico's industrial production next year, despite recent declines.
The return of official economic data is expected to influence Federal Reserve policy decisions in their upcoming meeting.

The Mexican peso strengthened for a fourth straight session on Tuesday after the U.S. Senate approved a bill to end the longest government shutdown in U.S. history, which lasted 41 days.

The exchange rate closed at 18.3150 pesos per dollar, appreciating 0.36% from Monday’s 18.3807, according to official data from the Bank of Mexico (Banxico). During the day, the dollar traded between 18.3986 and 18.3128 pesos. The Dollar Index (DXY) fell 0.31% to 99.32 points.

USD/MXN

U.S. Government Set to Reopen

The Senate’s approval of a funding bill paves the way for the federal government to reopen, restoring normal operations at key agencies and ending a record-breaking shutdown that disrupted economic reporting. The bill now heads to the House of Representatives, where Speaker Mike Johnson aims to pass it as soon as Wednesday, allowing President Donald Trump to sign it into law.

Analysts noted that beyond the political breakthrough, markets welcomed the return of official economic data — crucial for guiding Federal Reserve policy decisions. The Fed’s next meeting, set for December 9–10, could provide fresh clues on rate direction after two consecutive 25-basis-point cuts in September and October.

Local Data Shows Weakness

In Mexico, weak industrial production figures had little effect on sentiment. Output fell in September for a fourth straight month, mainly due to construction declines. However, analysts expect a gradual recovery next year, driven by a rebound in both public and private investment and stronger manufacturing activity.

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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.