The Mexican peso weakened past 18 per US dollar to its lowest since early December as a diverging monetary policy outlook between the US and Mexico reduced the currency’s longstanding carry trade appeal. Traders reacted to the Bank of Mexico unexpectedly resuming its easing cycle with a 0.25% rate cut to 6.75% while headline inflation spiked to 4.63% in mid-March. This move was primarily driven by weakness in domestic economic activity just before the unemployment rate rose to 2.6% in February. Global sentiment further pressured the peso as the dollar strengthened after reports that the Pentagon may send 10,000 more troops to the Middle East while President Trump extended a deadline to attack Iranian energy infrastructure for 10 days. Underemployment at 7.0% and high informal employment at 54.8% alongside narrowing interest rate gaps have limited the peso’s appeal as markets now price in a 50% chance the Federal Reserve could hike rates by December.
The USD/MXN exchange rate fell to 17.9315 on March 31, 2026, down 0.96% from the previous session. Over the past month, the Mexican Peso has weakened 3.56%, but it's up by 11.91% over the last 12 months. Historically, the USDMXN reached an all time high of 25.78 in April of 2020. Mexican Peso - data, forecasts, historical chart - was last updated on March 31 of 2026.
The USD/MXN exchange rate fell to 17.9315 on March 31, 2026, down 0.96% from the previous session. Over the past month, the Mexican Peso has weakened 3.56%, but it's up by 11.91% over the last 12 months. The Mexican Peso is expected to trade at 18.11 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 17.58 in 12 months time.