Mexican Peso Holds Firm, Edges Higher for the Week
Earlier in the day, the peso retreated due to a stronger dollar in the market and following the Bank of Japan’s interest rate hike.
Quick overview
- The Mexican peso remained stable against the dollar, closing at 17.9994 pesos per dollar on Friday.
- The currency experienced minimal fluctuations during a week influenced by monetary policy decisions from various central banks, including Banxico.
- Banxico lowered its benchmark rate by 25 basis points, marking the 13th reduction in the easing cycle.
- The peso's slight weekly gain of 0.20% reflects a marginal improvement compared to the previous week's close.
The Mexican peso showed little movement at the end of a week marked by monetary policy decisions from several central banks, including the Bank of Mexico (Banxico).
The peso closed stable against the dollar on Friday, ending the week largely unchanged. The local currency showed minimal fluctuations after a week influenced by key policy decisions from multiple central banks, including Banxico.
The exchange rate finished the session at 17.9994 pesos per dollar. Compared with Thursday’s close of 18.0032 pesos per dollar, according to official Banxico data, this represented a marginal gain of 0.02% for the currency, less than a cent.
During the day, the dollar traded in a range between a high of 18.0390 pesos and a low of 17.9887 pesos. The U.S. Dollar Index (DXY), which tracks the greenback against six major currencies on the Intercontinental Exchange, rose 0.15% to 98.60.
Mexican Peso Performance
Earlier in the day, the peso retreated due to a stronger dollar in the market and following the Bank of Japan’s interest rate hike to levels not seen in 30 years, along with its statement that further increases could occur in 2026—defining a new trajectory after years of low rates.
Today, the peso was pressured by the strength of the U.S. currency as well as the Bank of Japan’s monetary policy decision, which continues to reduce the attractiveness of the local currency in carry trade strategies.
Mexican Central Bank Policy
On the domestic front, Banxico lowered its benchmark rate by 25 basis points yesterday, marking the 13th reduction since the easing cycle began last year. The move also narrowed the interest rate differential for carry trades, which could be reflected in the exchange rate.
With today’s close, the peso slightly extended its weekly gain. Compared with last Friday’s official close of 18.0354 pesos, according to the central bank, the current level represents an accumulated gain of 3.60 cents, or 0.20%.
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