The Mexican peso hits its strongest level of the year

The Mexican peso got an aboriginal Christmas bonus, reaching its champion level successful 17 months, boosted by a retreat of the dollar and a greater appetite for emerging marketplace assets.

According to information from Mexico’s cardinal slope (Banxico), the currency appreciated 0.25% against the greenback, closing connected Thursday astatine 18.23 units per U.S. dollar, a level not seen since July 23, 2024, erstwhile it traded astatine 18.17.

The peso had strengthened to 18.19 to the U.S. dollar by 11:30 a.m. Friday, Mexico City time.

According to information from Banxico, the speech complaint traded Thursday betwixt a precocious of 18.2570 and a debased of 18.2250 successful the wholesale market. The Banco Base investigation squad reported that the Mexican peso was the third-best performing currency successful Thursday’s session.

The paper El Financiero reported that expectations astir the adjacent U.S. Federal Reserve monetary argumentation gathering — scheduled for Dec. 9-10 — contributed to the peso’s performance.

Analysts person projected that the Fed volition chopped its cardinal involvement complaint adjacent week successful hopes of boosting the faltering U.S. occupation market, raising concerns that little borrowing costs could stoke inflation.

The paper El Economista reported that the dollar’s diminution comes arsenic traders measure information from the U.S. Personal Consumption Expenditures (PCE) terms index, the Fed’s preferred ostentation benchmark, which roseate 0.3% successful enactment with expectations.

Financial markets were said to beryllium pricing successful an 87% accidental the Fed would trim its cardinal involvement complaint by a quarter-point, which would beryllium its 3rd complaint chopped successful arsenic galore meetings.

Felipe Mendoza, CEO of IMB Capital Qants, told El Financiero that the appreciation of Mexico’s currency connected Thursday indicates that “despite planetary volatility and geopolitical noise, the structural enactment of the peso remains successful spot acknowledgment to an charismatic carry, the anticipation of a Fed chopped … and home fiscal stability.”

An “attractive carry” refers to an concern (like a enslaved oregon currency) that offers a high, dependable income watercourse (also referred to arsenic “the carry”) comparative to its cost, allowing investors to nett conscionable from holding the plus arsenic clip passes.

#AlSonarLaCampana | El peso mexicano ganó terreno frente al dólar. El #TipoDeCambio se situó en 18.23 pesos por billete verde.
📺: @TonyAguirre10 pic.twitter.com/Cet8yEkvAC

— El Financiero (@ElFinanciero_Mx) December 4, 2025

The Mexican peso has appreciated 12.7% against the U.S. dollar truthful acold successful 2025, but analysts are already turning their attraction to 2026 erstwhile Fed president Jerome Powell volition measurement down successful May.

Friday’s marketplace is apt to beryllium impacted by today’s first-ever gathering betwixt Mexican President Claudia Sheinbaum and her U.S. counterpart, Donald Trump, which could fortify what is viewed arsenic a bully relationship.

With reports from El Economista, La Jornada and El Financiero