Mexican Peso Strengthens to 2-Year High

2026-08-24 14:39 By Isabela Couto 1 min. read

The Mexican peso strengthened to 19.65 per US dollar, the strongest in over two years, as recent dollar weakness magnified the impact from wide interest-rate differentials.

The Bank of Mexico is expected to maintain its benchmark rate at 6.5% in the near term as inflationary risks from high energy prices were met with some traction to economic growth.

The Mexican GDP expanded 1.4% from the previous quarter in the period to June, rebounding from a contraction in Q1 despite macroeconomic headwinds from higher energy prices.

On top of that, headline inflation picked up to 3.26% in mid-August from 3.12% in July.

Meanwhile, the US dollar was under pressure following measures by the Treasury Department to intervene in the bond market to supress yields.

The measures supported demand for Mexican assets as high real rates by Banxico drove the appeal for peso-denominated fixed-income.



News Stream
Mexican Peso Strengthens to 2-Year High
The Mexican peso strengthened to 19.65 per US dollar, the strongest in over two years, as recent dollar weakness magnified the impact from wide interest-rate differentials. The Bank of Mexico is expected to maintain its benchmark rate at 6.5% in the near term as inflationary risks from high energy prices were met with some traction to economic growth. The Mexican GDP expanded 1.4% from the previous quarter in the period to June, rebounding from a contraction in Q1 despite macroeconomic headwinds from higher energy prices. On top of that, headline inflation picked up to 3.26% in mid-August from 3.12% in July. Meanwhile, the US dollar was under pressure following measures by the Treasury Department to intervene in the bond market to supress yields. The measures supported demand for Mexican assets as high real rates by Banxico drove the appeal for peso-denominated fixed-income.
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