11.09.202617:14:35UTC+00Mexican Peso Holds Near 2-Year High

The Mexican peso strengthened to around 16.98 per US dollar, hovering near the more than two-year high of 16.91 reached on September 4th. The move came as Mexico’s industrial production rose 2.7% year-on-year in July 2026, the fastest pace since April 2024 and well above the 1.8% increase expected by markets. Gross fixed investment also advanced 7.7% in June, exceeding forecasts for a 4.8% gain.

In its latest decision, Banxico left the benchmark interest rate unchanged at 6.50% and noted that the economy rebounded in the second quarter of 2026. This improvement could justify a more hawkish tone and help attract additional foreign capital inflows, particularly through exports.

At the same time, the US dollar found support on expectations that the Federal Reserve could raise interest rates in September. Core US CPI rose slightly more than anticipated on a monthly basis, while headline inflation remained elevated amid higher energy prices. A Fed rate hike would narrow the interest-rate differential between the United States and Mexico.