Mexico’s peso came under renewed pressure in late October as the central bank’s daily dollar quote rose 9.5% from Sept. 11 to Oct. 26, while policymakers’ minutes showed competing views on future cuts.
The official daily FIX series put the rate at 16.9707 pesos per U.S. dollar on Sept. 11 and 18.5798 on Oct. 26, a 9.5% increase in the peso-per-dollar quote. A larger quote means more pesos are needed to buy a dollar, so it reflects a weaker peso; the figures are daily observations, not intraday prices.
Banco de México’s Governing Board unanimously kept its overnight rate at 6.50% on Sept. 24. Minutes released Oct. 8 show that members differed over what should follow: one said a cut could be considered if conditions allowed, while another supported keeping rates unchanged for an extended period. A third said a reduction could be discussed if inflation kept falling and financial conditions remained orderly. The minutes also said policymakers were not required to mirror anticipated Federal Reserve rate moves automatically.
FXStreet reported Oct. 27 that Mexico’s rate outlook, uncertainty surrounding the United States-Mexico-Canada Agreement (USMCA) and rising risk aversion were adding pressure to the peso. In the same report, Commerzbank FX analyst Michael Pfister described the selloff as excessive and said limited further weakness was likely because markets had absorbed much of the uncertainty he was watching.
The Office of the United States Trade Representative (USTR) said the United States did not agree to renew the USMCA at the July 1 joint review, and the agreement remains in force while issues are addressed unless it is terminated. USTR is seeking public comments and requests to participate in a public hearing by Jan. 12, 2027, at 11:59 p.m. EST; its notice did not set a hearing date.
Banco de México’s calendar lists its next policy announcement for Nov. 5 at 2 p.m. ET (1 p.m. CST).
