The Mexican peso closed the session higher on 23 October, ending two sessions under pressure. The exchange rate stood at 18.6601 pesos per dollar, according to Banco de México, an appreciation of 0.28 percent or 5.33 centavos against the previous close. Even so, the currency still lost ground over the week, with a cumulative depreciation of 0.84 percent, or 15.56 centavos.
What could keep the peso firm
Gabriela Siller, director of economic analysis at Banco Base, pointed to several forces that could keep upward pressure on the exchange rate. She cited the unwinding of carry trade positions, as investors anticipate a smaller interest rate differential between Mexico and the United States. She also flagged the possibility that the dollar strengthens again if the Federal Reserve raises its rate once more before year-end. Greater risk aversion toward Mexico was the third factor she named.
Traders are waiting for economic data for clues on the Fed’s policy path.
Wider currency moves
The US dollar index rose 0.20 percent to 101.81 points on the day. Among major currencies, the Russian ruble gained the most, up 1.31 percent, while the Japanese yen rose 0.27 percent. On the weaker side, the Polish zloty fell 0.52 percent and the South African rand dropped 0.48 percent.
At retail counters, Banamex quoted the dollar’s selling price at 19.12 pesos. The US 10-year Treasury yield stood at 4.98 percent, while Mexico’s 10-year bond yield was 9.26 percent.
Related: Mexican peso falls 1.15% to 18.63 per dollar · Citi raises end-2026 peso forecast to 18.20 per dollar
Source: Bank of Mexico
