The Mexican peso weakened against the U.S. dollar on Oct. 21, with the USD/MXN pair closing 1.3190% higher in Twelve Data’s daily series and reaching an intraday high of 18.7299 pesos per dollar.
USD/MXN measures how many pesos are needed to buy one U.S. dollar. The rise meant dollar-denominated payments cost more pesos at the exchange rate recorded that day. Twelve Data’s daily bar showed a close of 18.6714. FXStreet’s earlier snapshot showed 18.70, up 1.49%, at 3:15 p.m. ET (19:15:53 GMT); it was a separate intraday reading.
Oil prices also rose. Reuters reported that Brent crude futures gained $2.06, or 1.9%, to $110.85 a barrel, while U.S. West Texas Intermediate (WTI) crude futures added $2.13, or 2.2%, to $99.95 by 6:48 a.m. ET (10:48 GMT) on Oct. 21. Reuters attributed the gains to concern about Middle East supply risks. The outlet also reported that Iranian Foreign Minister Abbas Araqchi told the Financial Times Iran was prepared to defend itself, and that President Masoud Pezeshkian said the United States could not expect dialogue while blockading and threatening Iran.
FXStreet linked peso pressure to geopolitical risk and the possibility of a narrower interest-rate gap between Mexico and the United States. The Bank of Mexico (Banxico) held its overnight target rate at 6.50% on Sept. 24. The Fed raised its federal funds target range by 25 basis points to 3.75%-4.00% on Sept. 16, leaving Banxico’s rate 250 to 275 basis points higher.
The Fed’s September projections put its median federal funds rate at 4.1% for year-end 2026. The two policy rates would be closer if that median materialized while Banxico kept its rate at 6.50%. The Fed’s 4.1% figure is a projection, not a policy commitment.
Mexico’s National Institute of Statistics and Geography (INEGI) reported that real retail trade income rose 1.2% in August from the previous month, seasonally adjusted. INEGI set Oct. 22 for its inflation release covering the first half of October. The Fed is scheduled to meet Oct. 27-28, followed by Banxico’s next rate decision on Nov. 5.
