Mexican peso weakens against dollar amid Fed rate expectations

On June 23, 2026 the Mexican peso opened at about 17.49 pesos per U.S. dollar, slipping as markets priced a greater than 85% chance that the Federal Reserve will raise rates later in the year. Analysts linked the dollar’s strength to anticipated tighter U.S. monetary policy and lingering Middle‑East tensions.

The following day, June 24, the peso fell further to an average of 17.55 per dollar, an intraday rise of roughly 0.39%. The move was attributed to uncertainty over a recent Middle‑East agreement, prompting investors to seek safe‑haven assets. The weaker peso boosted the value of remittances sent to Mexico. Volatility remained moderate at about 5.5%. Major Mexican banks quoted sell prices ranging from 17.49 to 18.04 pesos per dollar, with BBVA offering the lowest sale rate and Banamex the highest purchase rate.