Mexican Peso Weakens to 3-Week Low

2026-04-29 19:27 By Isabela Couto 1 min. read

The Mexican peso weakened to 17.5 per USD in the end of April, the lowest in three weeks, as geopolitical tensions strengthened demand for hard currencies.

US President Trump signaled the blockade of tankers from Iran will remain in the near term, dimming expectations of an agreement to end the conflict and driving emerging markets to pivot toward harder currencies.

The greenback was also supported by hawkish dissents in the Fed's rate hold.

Also, Mexico's 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 globally due to the Iran conflict.

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.



News Stream
Mexican Peso Weakens to 3-Week Low
The Mexican peso weakened to 17.5 per USD in the end of April, the lowest in three weeks, as geopolitical tensions strengthened demand for hard currencies. US President Trump signaled the blockade of tankers from Iran will remain in the near term, dimming expectations of an agreement to end the conflict and driving emerging markets to pivot toward harder currencies. The greenback was also supported by hawkish dissents in the Fed's rate hold. Also, Mexico's 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 globally due to the Iran conflict. 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.
2026-04-29
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