Mexican peso drops to 18.41 per dollar, a 10-month low

The Mexican peso depreciated 1.15% against the US dollar on Friday, October 9, closing at 18.41 units per dollar according to Banco de México. The currency lost 21 centavos from its close on Thursday, October 8, reaching its weakest level since November 2025. Over the week, the peso lost 25 centavos after ending at 18.16 units on Friday, October 2.

At commercial bank Banamex, the dollar was quoted at 18.89 Mexican pesos for sale and 17.89 Mexican pesos for purchase on Friday, October 9.

Gabriela Siller, director of economic analysis at Banco Base, noted that narrowing rate differentials are weighing on the currency. If Banco de México cuts its benchmark rate by 25 basis points to 6.25% by year-end while the Federal Reserve hikes to a 4% to 4.25% range, the spread would hit a record low of 200 basis points. Siller also highlighted a rate increase by the Bank of Japan to 1.25%, which narrowed the gap against the yen to its lowest level since 2021.

According to Siller, risk perception regarding Mexico has also increased due to potential US restrictions on diesel exports alongside concerns from credit rating agencies over a wide projected fiscal deficit.