Overview
- The peso closed at 17.8930 per dollar, up 0.27% on the day and 0.59% for the week, marking a fifth straight weekly advance, according to Banxico.
- For 2025 the currency appreciated about 14.3%, its strongest calendar-year performance since Mexico adopted a free float in 1994, surpassing the 13.01% gain in 2023.
- A weaker U.S. dollar contributed to the move, with the DXY index down roughly 9.4% this year, enhancing gains in higher-yielding currencies.
- Carry-trade appeal and wide rate differentials, alongside expectations of Fed rate cuts and reported liquidity injections, were cited by analysts as key supports.
- CFTC data show speculative net longs on the peso fell to about 87,100 contracts from roughly 107,000 a week earlier, while some analysts see scope for a move toward 17.65 per dollar in early 2026.