FX.co ★ Mexican Peso Climbs After Labor Data

The Mexican peso has surged past 18.32 per US dollar, reaching its highest point since July 2024. This ascent is bolstered by indicators of a robust labor market, which support the argument for Banxico to maintain its stringent policy stance. As of October 2025, Mexico's unemployment rate remained steady at 2.6%. This figure, although slightly above the 2.5% recorded a year prior, falls below the anticipated 2.8% and is lower than the average for the previous six months. These figures underscore firm employment conditions despite a slowdown in global economic activity. This economic resilience corresponds with Mexico achieving its first trade surplus since June and Banxico adjusting its year-end inflation forecast downward from 3.7% to 3.5%. This combination enhances Mexico’s external economic position and alleviates concerns about persistent inflation. Concurrently, the US dollar has weakened due to heightened market expectations of the Federal Reserve easing policy in December, thus reducing a significant obstacle for emerging market currencies and hastening the peso's recovery.