Dollar Holds Steady as Mexican Peso Navigates Inflation Data, Banxico Rate cuts
Mexico City – The U.S. dollar traded at 18.83 Mexican pesos at bank windows as of Saturday, September 27, 2025, according to Banamex data. This comes amid market evaluation of potential further rate cuts by the U.S. Federal Reserve and ongoing geopolitical risks in Eastern Europe.
The peso is currently supported between 18.40-18.35 units and faces resistance at 18.55-18.60, according to financial market analyst Felipe Mendoza of ATFX Broad.
Meanwhile, the Bank of Mexico (banxico) has implemented a tenth interest rate cut, bringing it to 7.5 percent, with further adjustments to 7 percent possible in November and December.
The dollar’s stability follows the release of the PCE deflator,a key indicator for the Federal Reserve,which showed a monthly advance of 0.26 percent and an annual rate of 2.74 percent - its highest level sence December 2024, but in line with market expectations. The Dollar Index (dxy) retreated 0.29 percent to 98.26 units, and the bbdxy lost 0.24 percent, closing at 1,205.61 points.
As of today, September 27, 2025, the dollar is being bought for 17.30 pesos and sold for 18.84 pesos. While most banking activity is paused on weekends, branches of Azteca Bank remain open.
The euro closed on Friday, September 26, 2025, at a purchase price of 20.20 pesos and a sale price of 22.85 pesos.
Banxico states the peso’s value is determined by supply and demand in the international currency market, operating under a flexible exchange rate regime adopted in 1994.The Mexican peso is one of the four most exchanged emerging market currencies and is available for buying and selling 24/7, 365 days a year.
