Mexican peso dollar exchange rate ahead of Banxico decision, Digi Mart USA News (Mexico): The Mexican peso extended its gains against the U.S. dollar at the start of the November 5 session, with the USD/MXN pair holding below 18.60 units, according to Investing.com.
Markets were digesting the Democratic sweep in the U.S. midterm elections while awaiting the monetary policy decision from Banco de Mexico (Banxico) and any signals it might offer on the future path of interest rates.
Around 7:45 a.m. Mexico City time, the dollar traded at 18.57 pesos, a 0.16% appreciation for the peso, within a range of 18.5408 to 18.6354 pesos per dollar, based on real-time Investing.com data.
Janneth Quiroz Zamora, director of Economic, Exchange Rate and Securities Analysis, said the peso remained firm amid a stable dollar, with attention focused on Banxico’s policy decision.
The article noted that USD/MXN maintains an upward bias that has not been confirmed as broken. The pair has risen for eight consecutive weeks from 16.8555, and daily and weekly moving averages remain aligned upward.
Banamex and BofA expect Banxico to keep its benchmark rate at 6.50% on November 5, 2026, though both acknowledged the risk of a cut, while Mexican inflation exceeded expectations.
Analysts polled anticipated that monetary authorities would leave rates unchanged at 6.50%. Gabriela Siller Pagaza, director of Economic and Financial Analysis at Grupo Financiero Base, said that if the rate stays unchanged, markets will watch the statement and forward guidance for the likelihood of cuts in coming months, while a rate cut today could push the exchange rate toward 18.80 pesos per dollar.
The U.S. Dollar Index, which measures the dollar against a basket of six major currencies, rose 0.06% to 101.63.
Siller Pagaza noted that global financial markets were still digesting the Democratic victory in the U.S. midterm elections held November 3.
Preliminary results gave Democrats 242 seats in the House of Representatives, above the 218-seat majority, and 54 of 100 seats in the Senate.
Banorte said the Democratic win could raise market concerns about stricter rules on artificial intelligence and data centers, but also brings prospects of fiscal moderation and an end to the Iran war.
