The Mexican peso weakened on Tuesday, November 3, 2026, trading near 18.59 units per dollar, according to Milenio, as investors weighed the outcome of US midterm elections and continued geopolitical risk tied to tensions between Washington and Tehran. The move erased part of the previous session's advance, when the currency posted its strongest single-day performance since April. Milenio reported the peso's loss at 0.15 percent against Monday's LSEG reference price.
Other outlets put the rate at slightly different levels during the session. La Jornada reported the peso operating at 18.67 per dollar, while UnoTV cited 18.79. Investing.com México noted the currency trading below 18.60 at one point. Banco Base, in a report cited by Milenio, said the peso opened with a gain of about 0.12 percent, or 1.9 centavos, around 18.55 per dollar, with the exchange rate touching a high of 18.61 and a low of 18.52 during early trading.
Why it matters
The peso's swing matters well beyond currency desks. A weaker peso raises the cost of imported goods and dollar-denominated debt for Mexican businesses and consumers, and it feeds into inflation expectations that guide Banco de México's interest rate decisions. The currency had rallied sharply on Monday, gaining 1.1 percent, and Tuesday's pullback shows how quickly sentiment can reverse when political uncertainty is in play. For households planning to buy dollars, Milenio noted that specialists recommend using institutions regulated by financial authorities, since rates and commissions vary between banks and exchange houses.
Elections and geopolitics drive the session
According to Milenio, the US midterm elections dominated trading, with polls and independent analysts suggesting Democrats could retake the House of Representatives while control of the Senate remained unclear. Investors were also monitoring friction between Washington and Tehran, and crude prices swung on conflicting signals about negotiations to end the war in Iran, Milenio reported.
The dollar index, which tracks the greenback against six major currencies, edged up 0.1 percent to 101.86, per Milenio. Among other majors, the euro was roughly flat near 1.1184 dollars, sterling added about 0.09 percent to 1.3417, and the yen slipped 0.34 percent to 158.46 per dollar. Milenio's earlier snapshot showed the euro gaining 0.14 percent to 1.12 dollars, the pound up 0.1 percent at 1.34, and the yen slightly stronger at 157.8.
Banco Base attributed part of the peso's early strength to an announcement by US President Donald Trump that his government would suspend financial assistance to Israel from the end of 2026, arguing Israel's economy can fund its own needs, according to Milenio. Trump said during an interview that the United States sends roughly 4 billion dollars a year to Israel and that the decision had been agreed with Israeli Prime Minister Benjamin Netanyahu.
US data paints a firmer labor picture
US economic releases also shaped the mood. Milenio reported that job openings rose notably in September while layoffs fell, supporting economists' view that the labor market held up despite weak hiring that month. The Labor Department's Job Openings and Labor Turnover Survey showed openings, a gauge of labor demand, climbing by 333,000 to 7.523 million at the end of September, with August figures revised up to 7.190 million from the 7.079 million previously reported.
Separately, new orders for US manufactured goods rose more than expected in September, lifted by aircraft and other categories, according to official data cited by Milenio. The Commerce Department's Census Bureau reported a 1.8 percent increase after an upwardly revised 0.3 percent gain in August; economists polled by Reuters had expected 1.2 percent.
What analysts expect next
Laura Torres, director of investment at IMB Capital Quants, told Milenio she expects the exchange rate to trade within a technical consolidation range of 18.48 to 18.68 pesos per dollar during the session. If uncertainty over the US vote count intensifies and prompts defensive dollar buying by local and institutional traders, she said, the pair could rebound toward immediate resistance between 18.65 and 18.74.
Investors will now watch the vote-counting process and any fresh signals from Washington on Iran, since both could move the peso outside the ranges analysts have mapped.
