Mexican Peso Hits July 2024 Highs

2025-12-11 15:40 By Felipe Alarcon 1 min. read

The Mexican peso has strengthened toward 18 per US dollar, pushing back to July 2024 highs as the dollar softened after the Federal Reserve cut rates and signalled a more dovish path, while investors dialed back expectations for the timing and scale of further easing by the Bank of Mexico following recent price data.

The Fed’s 25 basis point move and its plan to buy about $40 billion of short dated Treasuries tightened money market conditions and reinforced bets on more easing next year.

Domestically, November headline inflation surprised on the upside at 3.80% year on year and core inflation re accelerated to about 4.43% year on year, a mix that raises the bar for rapid cuts even as growth remains weak.

Banxico has already eased policy from earlier peaks but is proceeding meeting by meeting, which keeps real Mexican policy rates relatively attractive versus expected US levels and supports peso inflows tied to yield differentials.



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