The Mexican peso depreciated more than 1 percent against the US dollar in Wednesday’s session, with the exchange rate reaching 18.63 pesos per dollar, 21 centavos above Tuesday’s close. Bloomberg data put the session’s decline at 1.15 percent.
Gabriela Siller, directora de análisis económico at Banco Base, said the peso was the most depreciated currency of the session. “The Mexican peso is the most depreciated currency in the session, because the unwinding of carry trade positions continues, given the reduction in the interest rate differential between Mexico and the United States,” she said.
Rate gap in focus
Siller pointed to market forecasts showing the Federal Reserve raising its rate by 25 basis points at the December meeting. The 10-year US Treasury yield stood at 5.10 percent, against 9.31 percent for its Mexican counterpart.
A Citi survey found analysts expect Banco de México’s interest rate to show no movement in 2026 or 2027. The same survey showed the consensus exchange rate forecast worsening, with economists now expecting the dollar to close 2026 at 18.20 pesos.
Other currencies, retail rates
The peso’s slide outpaced declines elsewhere among emerging-market currencies. The Colombian peso fell 0.59 percent, the Hungarian forint 0.32 percent, the Chilean peso 0.23 percent and the Indonesian rupiah 0.10 percent.
At Banamex branches, the dollar was quoted at 19.12 pesos on the sell side and 18.10 pesos on the buy side.
Related: Mexican peso firms to 18.42 per dollar on Monday · Mexican peso gains to 18.39 per dollar amid Fed rate-hike bets
Source: Bank of Mexico
