Mexican peso’s seven-week losing streak persists despite Friday rebound

Daily gain within a longer decline

The Mexican peso finished Friday stronger against the U.S. dollar, but the recovery was not enough to end a longer slide. The peso closed at 18.6601 per dollar, up 0.28% on the day, while logging a 0.84% loss for the week. El CEO described it as the peso’s seventh straight week of depreciation against the dollar. ^{[1] [2] [3]}

Banco de México records the Oct. 23 session-closing exchange rate at 18.6601 pesos per dollar. That is a market close, not the same as the separate FIX reference rate, which the central bank lists at 18.6670 for that date. The distinction matters when comparing market coverage with reference or retail bank rates. ^[1]

Reported pressures on the currency

Mexico News Daily reported that the peso had weakened nearly 10% against the dollar over seven weeks and reached its weakest closing level in more than a year Thursday. It cited the narrowing interest-rate gap between Mexico and the United States, geopolitical risk aversion and uncertainty over the USMCA trade pact as pressures. ^[4]

Friday’s rebound came amid signs of stronger Mexican economic activity and expectations that Mexico and the United States could reach a trade agreement, according to El CEO. El Financiero also cited concern about a narrower rate differential and possible further dollar strength if the Federal Reserve raises rates again. ^{[2] [3]}

Those are reported market explanations, not guarantees of where the exchange rate will move next. Currency prices can react to several forces at once, including monetary policy, trade expectations and changing demand for assets seen as safer during periods of risk. ^{[1] [2] [3] [4]}