The Mexican peso weakened to about 18.44 per US dollar in October, approaching a one‑year low following the release of the Bank of Mexico’s meeting minutes. The currency became one of the worst performers among emerging markets, as the minutes kept open the prospect of additional interest-rate cuts.
Most members of the Governing Board indicated that moderating core inflation and subdued domestic consumption create scope to continue easing monetary policy through late 2026 and into early 2027. This reinforced expectations of a narrowing interest-rate differential between Mexico and the United States, diminishing the peso’s attractiveness for carry trades and driving stronger demand for dollars in the spot market.
Meanwhile, annual inflation accelerated to 3.45% in September from 3.26% in August. Although slightly below market forecasts, the figure added uncertainty to the outlook for domestic monetary policy.
