Mexican Peso Gains Ground as Fed Holds Rates, Banxico Cut Anticipated
Mexico City – November 21, 2025 – the Mexican peso is showing strength today, Friday, November 21, 2025, following the Federal Reserve’s decision to maintain the federal funds rate in a target range of 3.75%-4.00%. Simultaneously,analysts predict the Bank of Mexico (Banxico) will lower its benchmark interest rate by 25 basis points to 7.00% during its December 18 meeting.
Currently, the dollar is being bought in Mexican banks at 17.50 pesos and sold for up to 18.90 pesos.Specific bank quotes as of today include:
* Affirm: 17.50 pesos purchase | 18.90 pesos sale
* banco azteca: 16.90 pesos purchase | 18.84 pesos sale
* Banorte: 17.65 pesos purchase | 18.70 pesos sale
* BBVA: 17.52 pesos purchase | 18.66 pesos sale
* Banamex: 17.81 pesos purchase | 18.83 pesos sale
The price of the dollar in Mexico is influenced by a complex interplay of factors, including interest rates, inflation, economic growth, the political climate, and remittance flows. Higher U.S. Federal Reserve rates typically strengthen the dollar, while increases to Banxico’s rates can bolster the peso. High Mexican inflation tends to devalue the peso and raise the dollar price. Economic performance and political stability also play significant roles, with strong growth and stability favoring the peso. Increased remittances can increase the supply of dollars, potentially stabilizing or lowering the exchange rate.