Mexican Peso Eases as Inflation Cools

2026-04-27 17:05 By Isabela Couto 1 min. read

The Mexican peso traded near 17.4 per USD, easing from the six-month high of 17.25 touched on April 15th, after data reflected a cooler inflation rate.

The annual domestic inflation rate eased to 4.53% in the first half of April 2026, down from 4.63% in March, despite higher energy prices across the globe due to the conflict in Iran.

Core inflation also declined to 4.27%, the lowest in five months, falling from 4.46%.

The easing inflation has raised expectations for a more dovish stance by the Bank of Mexico, contributing to the peso's depreciation against the US dollar.

The central bank had already surprised markets in its last rate decision by delivering a 25bps cut to 6.75%, the lowest in nearly four years.

Still, the peso remained 3.6% higher since the start of the year with support from carry-trade demand from US investors.



News Stream
Mexican Peso Eases as Inflation Cools
The Mexican peso traded near 17.4 per USD, easing from the six-month high of 17.25 touched on April 15th, after data reflected a cooler inflation rate. The annual domestic inflation rate eased to 4.53% in the first half of April 2026, down from 4.63% in March, despite higher energy prices across the globe due to the conflict in Iran. Core inflation also declined to 4.27%, the lowest in five months, falling from 4.46%. The easing inflation has raised expectations for a more dovish stance by the Bank of Mexico, contributing to the peso's depreciation against the US dollar. The central bank had already surprised markets in its last rate decision by delivering a 25bps cut to 6.75%, the lowest in nearly four years. Still, the peso remained 3.6% higher since the start of the year with support from carry-trade demand from US investors.
2026-04-27
Mexican Peso Holds at 6-Week High
The Mexican peso was at the 17.3 per USD mark, remaining relatively close to the six-week high of 17.25 from April 15th as markets dimmed expectations of rate hikes by the Federal Reserve, supporting emerging market currencies against the dollar. Benchmark oil prices eased off their multi-year peaks from late March and limited the magnitude of risk-off sentiment. In the meantime, inflation data showed that headline price growth in Mexico surged to its highest in 17 months in March. The data strengthened the argument for hawks in the Bank of Mexico, increasing the likelihood of a hold in the central bank's upcoming decision following the controversial cut this month.
2026-04-21
Mexican Peso Returns to 2-Week Lows
The Mexican peso weakened to 17.3 per USD, returning to levels seen at the beginning of April as the analysis highlights a shift in direction for the USD/MXN pair, signaling that the currency’s recent strength has hit a ceiling. This reversal is a direct response to rising geopolitical risks following the US Navy’s seizure of an Iranian cargo ship, an event that has effectively stalled tanker traffic in the Hormuz chokepoint and triggered a broader move toward safe-haven assets. With crude prices jumping 4.8% to $87. and the US Dollar Index (DXY) climbing to 98, the peso is seeing a natural pullback as global investors pivot away from emerging market risk, erasing the progress made over the last two weeks while the market remains on high alert over the situation
2026-04-20