The peso hits its weakest level in almost a year: 18.50 per dollar
WHAT HAPPENED
The peso fell 1.2% this Saturday and closed near 18.40 per dollar, its weakest level since November 2025. It has accumulated five weeks of losses and touched 18.4990.
WHY IT MATTERS
The Fed raised its rate to 3.75%-4.00%, while Banxico kept it at 6.50%. The difference between the two dropped to 2.5 points, its lowest level since 2007. This reduces the attractiveness of holding pesos and puts pressure on the exchange rate. Gasoline, electronics, factories, and trips to the US feel it first.
AND FOR YOUR PORTFOLIO
For a long-term portfolio, a weak peso can increase costs for companies that import products or materials, but favor Mexican exporters, as their dollars are worth more pesos. At home, 100 dollars went from costing about 1,815 to about 1,840 pesos in a week. Remittances yield more pesos.
💬 TELL IT LIKE THIS
“When Mexico pays relatively less than the US for money, some investors exchange pesos for dollars, and the peso weakens.”