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Mexican Peso Extends Rally to Strongest Since July 2024 After Five-Day Climb

Optimism over USMCA review talks boosted demand for the currency.

Overview

  • The peso closed at 17.6499 per dollar, up 0.92% on the day, marking its best level since July 16, 2024, according to Banco de México.
  • It notched a fifth straight advance and is up roughly 2% year to date in the first ten sessions of 2026.
  • Traders credited local signals around the start of USMCA review negotiations and Mexico’s high carry for sustained inflows.
  • Analysts noted shifting dollar dynamics as the DXY rose after a drop in U.S. initial jobless claims reinforced expectations for the Fed to keep rates unchanged.
  • Market data showed the peso among early January’s top performers in major currency baskets, with intraday trading between 17.6200 and 17.7860.