Mexican Peso Appreciates Against Dollar amid correction and Banxico Rate Decision Anticipation
Mexico City - November 4, 2025 – The mexican peso is gaining ground against the dollar today, driven by a “correction of losses” following October’s 1.4% decline,according to Base bank. However, the bank cautions that uncertainty remains, with potential for renewed depreciation if economic indicators weaken.
The peso’s resilience is being tested against a backdrop of international volatility stemming from a more restrictive tone from the U.S. Federal Reserve and statements from financial officials. Despite this, the Mexican peso has outperformed other emerging market currencies.
Domestically, recent political stability and easing inflationary pressures are prompting analysts to believe Banco de México (Banxico) may consider a gradual adjustment to its interest rate. Banxico faces the challenge of balancing monetary policy to avoid negatively impacting the exchange rate and foreign investment flows.
Banxico is scheduled to announce its decision on the reference interest rate – currently at 7.50% – on Thursday, November 6. A Reuters poll indicates most analysts predict a 25 basis point cut, bringing the rate to 7.25%. This move aims to stimulate credit and investment, supporting an expected 0.5% GDP expansion by 2025, while inflation remains around 3.78% within the central bank’s target range.
Economists warn that an excessive rate cut could pressure the peso. “Banxico must act with caution. If the market interprets the decision as a sign of weakness, the peso-dollar exchange rate could rebound towards levels close to 18.70 units,” Base Bank warned in its morning report.
Dollar Prices in Mexican Banks (November 4, 2025):
* Affirm: 17.70 pesos purchase | 19.10 pesos sale
* Banco Azteca: 16.85 pesos purchase | 19.04 pesos sale
* Banorte: 17.30 pesos purchase | 18.90 pesos sale
* BBVA: 17.52 pesos purchase | 19.06 pesos sale
* Banamex: 18.01 pesos purchase | 19.05 pesos sale
(With information from reuters.)
