Overview
- The peso strengthened for a second consecutive session and closed near MXN 18.5377 per US dollar after trading in a band around MXN 18.57–18.63 on Monday, November 9, 2026.
- A drop in the US dollar and a 3–5% fall in Brent crude tied to signs of diplomatic progress in the Middle East reduced investor demand for safe-hold dollars and supported the peso's rebound.
- Mexico's headline inflation accelerated to 3.75% year-on-year in October, a surprise above market forecasts that reduces the central bank's latitude to ease policy further.
- Banxico cut its policy rate by 25 basis points to 6.25% last week and signaled it expects to hold rates 'for a prolonged time,' which plus the higher inflation figure tempers expectations of additional cuts.
- Retail bank cash windows continued to show wider spreads, with consumer sell rates near MXN 19.00–19.11 per dollar, reflecting transaction costs and market microstructure despite stronger spot and Banxico reference quotes.