Mexican Peso Falls 1% at the Start of the Week

The Mexican peso has lost value at the start of this week amid the dollar's global rise, driven by the escalating situation in the Middle East and growing expectations that the Federal Reserve will raise interest rates this week.

The Mexican peso was trading at 17.1381 pesos per dollar, down 1 percent, after new attacks on Saudi energy infrastructure and ships near the Strait of Hormuz drove up oil prices, heightening concerns about global inflation.

Similarly, the market is bracing for the U.S. central bank’s decision later this week. Analysts predict that interest rates will rise, likely before the end of March of next year, following the release of August’s consumer price index data and a strong jobs report.

Given the current context, Banorte believes the Fed will provide temporary support for the dollar this week. The peso is expected to remain stable, continuing the trend that has kept it at levels not seen in two and a half years.

The financial group expects the currency to fluctuate between 16.50 and 17.50 units over the coming months, with the dollar closing out 2026 at 17.30 pesos.