The Mexican peso began the week of November 2, 2026 on weaker footing against the dollar, according to Milenio, which reported that the currency was under pressure from a broad global rise in the greenback at the start of a week heavy with monetary policy decisions. The Federal Reserve's upcoming meeting was among the events drawing market attention.
Milenio reported that the peso was trading at 18.74 pesos per dollar in interbank operations, a decline of 0.22 percent, citing Bloomberg data. The outlet also noted that Banco de México had recorded a rate of 18.79 pesos per dollar in the prior session.
At bank counters, the picture varied. According to Milenio, Afirme sold the dollar at 19.20 pesos, Banamex and Banorte at 19.05, BBVA at 18.86, Santander at 19.15 and Scotiabank at 19.30.
Why it matters
The peso's slide matters well beyond currency desks. A weaker peso raises the cost of imported goods and dollar-denominated debt, feeding into inflation pressures that Banco de México must weigh when setting interest rates. It also affects remittances, travel budgets and the pricing decisions of Mexican businesses that buy inputs abroad.
The move fits a pattern rather than a one-day blip. El Economista reported that the peso lost 4 percent in October, its second consecutive month of declines. Milenio, citing LSEG reference prices, reported that the currency had weakened 4.5 percent over the month and was trading at levels not seen since August 2025.
Carry trade unwind weighs on the currency
The central driver, as Milenio described it, is the unwinding of carry trade positions. Investors had been borrowing in lower-yielding currencies to invest in peso assets, profiting from the gap between Mexican and U.S. interest rates. Expectations of a narrower differential have made those positions less attractive, prompting money to flow out.
El Informador reported that analysts expect another week of losses for the Mexican currency. That view aligns with the broader market mood described by Milenio: a stronger dollar globally and caution ahead of the Fed's decision.
The peso's retreat comes even as Banco de México's own reference rate, at 18.79 pesos per dollar in the last session, sits below several bank counter prices. The gap between interbank and retail rates is routine, but it means consumers exchanging money at a window pay more than the headline figure suggests.
What to watch
The Fed's decision this week is the immediate variable. Any signal that U.S. rates will stay higher for longer would likely keep pressure on the peso by preserving or widening the rate gap that made carry trades profitable in the first place. Traders will also watch whether Banco de México adjusts its own stance in response, and whether the currency stabilizes or extends October's decline into a third month.
