Mexican peso falls after Banxico monetary policy announcement, Digi Mart USA News (Mexico): On Thursday, November 5, 2026, the Mexican peso weakened sharply against the U.S. dollar following the monetary policy announcement of the Bank of Mexico (Banxico).
At the close of trading, the exchange rate stood at 18.74 pesos per dollar, 18 centavos less than the close on Wednesday, November 4, according to a report from Banxico.
The central bank cut its benchmark interest rate by 25 basis points, bringing it to 6.25%, its lowest level since February 2022. The move drew attention to the currency’s decline in the afternoon trading session.
Gabriela Siller Pagaza, director of economic analysis at Grupo Financiero Base, said the Banxico rate cut could put pressure on the national currency and push the exchange rate toward the 19-peso mark. She said that, combined with a possible rate increase by the U.S.
Federal Reserve, the exchange rate could rise to 19.00 pesos per dollar this year, and could reach 19.50 in 2027 if the Fed continues raising rates or if risks to Mexico materialize.
Meanwhile, the U.S. Dollar Index, which measures the strength of the U.S.
dollar against a basket of six major developed-country currencies, rose 0.09% to 101.5 points.
