Mexican Peso Loses Ground

2026-02-26 14:24 By Felipe Alarcon 1 min. read

The Mexican peso weakened past 17.2 per, easing from mid-2024 highs as fresh protectionist trade measures in the US and a deteriorating formal labor market eroded the currency yield advantage.

The US invoked Section 122 to impose a 15% global import surcharge following a February 20 Supreme Court ruling that struck down previous emergency duties.

Demand for the peso softened as January 2026 data revealed a net loss of 8100 formal jobs marking the worst start to a year since 2014.

While the unemployment rate held at 2.7% in January 2026 business confidence remained in pessimistic territory for the eleventh consecutive month as manufacturing contracted.

Supply of the peso grew against a resilient US dollar supported by hawkish signals from the Federal Reserve amid sticky 3% core PCE inflation.

Banxico maintained interest rates at 7% in February 2026 but warned that trade surcharges delayed the expected return to a 3% inflation target until mid 2027.



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