Bullish
USD/MXN rises over 1% to 17.75 after Banxico's rate decision.
The Mexican peso weakened against the US dollar following the Bank of Mexico's (Banxico) decision to maintain the benchmark interest rate at 6.50%. Banxico emphasized its independent policy path, stating that monetary policy should not 'mechanically' respond to adjustments in the Federal Reserve's federal funds rate expectations. This stance led to a rise in USD/MXN, which reached 17.75, the highest level since April 2026. ([wap.stockstar.com](https://wap.stockstar.com/detail/IG2026092500003120?utm_source=openai))
Key points
- Banxico's decision to keep rates unchanged at 6.50% and its emphasis on an independent policy path contributed to the peso's decline.
- The Federal Reserve's hawkish rhetoric, including statements from officials like Cleveland Fed President Beth Hammack and Philadelphia Fed President Anna Paulson, has increased market expectations for a rate hike at the upcoming October 28 meeting.
- Recent US economic data, such as initial jobless claims for the week ending September 19, which fell to 197,000 from 198,000 the previous week, have influenced market sentiment.
Sources
AI-generated from public news sources. Not financial advice.
