MEXICO · MARKETS
Key Facts
- What is happening Mexico’s peso fell 0.65% on Tuesday, 27 October, and closed at 18.68 per US dollar, as traders waited for the Federal Reserve (the Fed), the US central bank, to announce its rate decision.
- Why it matters A weaker peso means each dollar buys more pesos, which helps US visitors and Mexican exporters but cuts the dollar value of peso assets held by US investors.
- The numbers Mexico’s central bank put the close at 18.6798, up from 18.5588 on Monday, and set its reference rate at 18.6525; at that rate US$100 buys about 1,865 pesos.
- Who is who Banxico is Mexico’s central bank and holds its rate at 6.5%; the Federal Reserve holds its range at 3.75% to 4%, so Mexico’s rate lead is about 2.5 points.
- What to watch The Fed’s decision on Wednesday, 28 October, then Banxico’s rate decision on Thursday, 5 November, and the Fed’s next meeting on 8 and 9 December.
- Power Index Mexico ranks 2nd of 14 in The Rio Times Latin America Power Index, with 71.4 points (October 2026 edition).
- What it means for you Each peso costs about 5.4 US cents, bank counters pay less than the wholesale rate, and peso investments lose dollar value when the currency falls.
The Mexican peso fell 0.65% to 18.68 per US dollar on Tuesday, 27 October. Traders were waiting for the Federal Reserve’s decision on Wednesday.
The Mexican peso lost 0.65% against the US dollar on Tuesday, 27 October, and closed at 18.68. Banco de México (Banxico), the central bank, recorded 18.6798, up from 18.5588 on Monday.
At Banxico’s reference rate, US$100 buys about 1,865 pesos. The move matters to US travellers, investors and Mexican families who receive money from relatives in the United States.
What Happened to the Peso on Tuesday
The peso traded between about 18.62 and 18.70 per dollar on Tuesday, interbank figures show. The interbank rate is the wholesale price banks use when trading dollars with each other.
It ended at 18.6798, a loss of 0.1210 pesos from Monday’s close of 18.5588. Banxico also set its reference rate, called the FIX, at 18.6525 on Tuesday.
The FIX is a daily rate that Banxico publishes for settling dollar obligations payable in Mexico. It differs from the closing rate, which is the last wholesale price of the day.
Janneth Quiroz, who heads currency analysis at brokerage Monex, said on Tuesday options pricing pointed to more short-term dollar strength. The peso lost more than any other major currency that day, ahead of the Czech koruna’s 0.21% drop.
Why the Peso Is Under Pressure
The Federal Reserve meets on Tuesday and Wednesday and announces its decision on Wednesday, 28 October. Traders widely expect no change, but a stronger dollar before the announcement pushed investors away from the peso.
On Wednesday, 16 September, the Fed raised its target range a quarter point to 3.75% to 4%, by 12 votes to 0. Banxico held its rate at 6.5% on Thursday, 24 September.
Measured against the top of the Fed’s range, Mexico’s rate lead is 2.5 percentage points. It would fall to 2.25 points if the Fed raised its range by another quarter point.
Traders call the trade behind this a carry trade: borrow cheaply in dollars, hold higher-yielding pesos and keep the difference. When the gap narrows, some of them sell pesos.
Many analysts expect another Fed increase at its meeting on 8 and 9 December, local surveys show. That expectation keeps pressure on the peso even if the Fed holds this week.
Where the 18.90 Figure Comes From
Some headlines put the peso close to 18.90 per dollar on Tuesday. No interbank or Banxico figure reached that level, because the day’s high was about 18.70.
Retail selling prices for dollars did sit near it, from 18.86 to 19.30 pesos at the big banks in one bank-by-bank listing. Banks charge Mexicans that price to sell them dollars, which is higher than the wholesale rate.
Tuesday’s close was also not a one-year low. Local press tallies of Banxico data put the weakest close in more than a year at about 18.71, on Thursday, 22 October.
What It Means for US Readers
US travellers get fewer pesos at bank counters than the wholesale rate suggests. In the same listing, banks bought dollars at 17.50 to 18.20 pesos each, against the FIX of 18.6525.
At the low end, US$100 would convert to 1,750 pesos instead of 1,865. One online transfer service showed 18.49 in the same listing, so compare options before exchanging cash.
US investors in peso bonds or Mexican shares measure returns in dollars, so a falling peso cuts them. The peso closed at 18.41 on Thursday, 15 October, and at 18.68 on 27 October.
Mexican families who receive dollars from the United States gain from the move: US$1,000 converts to about 18,650 pesos at the FIX. Mexican importers who pay in dollars face higher costs.
Background is in earlier reports on the peso’s 1.3% fall on 21 October and on Banxico holding rates at 6.5%. The Mexico market report for 27 October covers the stock market.
See also Mexico and the United States, explained and the Mexico coverage hub. Visitors can plan spending with the Mexico City page.
What Is Not Known
It is not known what the Fed will say on Wednesday or whether it will signal more increases. The peso’s reaction will show up only in Wednesday’s trading.
Banxico’s own exchange-rate page could not be queried here, so the close and the FIX rest on financial sites quoting it. The retail bank prices rest on a single listing.
A headline figure of 18.90 could not be matched to any interbank quote. It most likely reflects retail selling prices, but that is an inference.
What Comes Next
The Fed’s statement on Wednesday, 28 October, will set the tone for the dollar. Banxico decides on Thursday, 5 November, and most analysts do not expect a change to its 6.5% rate.
Citi’s survey of 37 forecasters on 20 October puts the year-end rate at 18.20. Its forecasts run from 16.80 to 18.90, so forecasters share no common view.
Frequently Asked Questions
How much did the Mexican peso fall on 27 October?
The peso lost 0.65% on Tuesday and closed at 18.6798 per US dollar, up from 18.5588 on Monday. Banxico’s reference rate, the FIX, was 18.6525.
Did the peso hit 18.90 per dollar?
No interbank quote reached 18.90, since the day’s high was about 18.70. Retail bank selling prices ran from 18.86 to 19.30 in one listing.
Is the peso at its weakest level in a year?
Not on Tuesday. The weakest close in more than a year was about 18.71 on Thursday, 22 October, by local press tallies of Banxico data.
Why is the Mexican peso falling?
A stronger dollar before the Federal Reserve’s decision and a narrowing gap between Mexican and US interest rates pushed investors away. Mexico’s rate is 6.5%; the Fed’s range is 3.75% to 4%.
What is the Banxico FIX rate?
The FIX is a daily reference rate set by Banxico, Mexico’s central bank. It is used to settle dollar obligations payable in Mexico.
How many pesos do I get for US$100?
About 1,865 pesos at the FIX of 18.6525. Bank counters pay less: 17.50 to 18.20 pesos per dollar in one bank listing on 27 October.
Sources: Banco de México, exchange-rate page (FIX and interbank rate); Banco de México, monetary policy decision of 24 September; Federal Reserve, FOMC meeting calendar 2026; Federal Reserve, FOMC statement of 16 September; Daily exchange-rate report, 27 October (close and range); Daily exchange-rate report, 27 October (FIX); Banxico FIX and interbank table, 27 October; Bank-by-bank dollar prices, 27 October; Morning market report, 27 October; Peso one-year-low report, 22 October; Citi, Mexico Expectations Survey of 20 October; Peso close, 21 October (all accessed 28 October 2026).
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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