Introduction
The Mexican peso (MXN) is trading at approximately 0.058 USD per peso as of February 23, 2026, reflecting a mid-market rate of 1 USD ≈ 17.20 MXN . This level marks a modest appreciation from earlier in the year, driven by a weakening U.S. dollar and favorable interest rate differentials. The peso’s performance is closely watched by exporters, remittance recipients, and policymakers, given its implications for trade, inflation, and monetary policy.
Current Exchange Rate Snapshot
As of today, 1 MXN equals 0.058 USD, with the inverse rate at 1 USD ≈ 17.20 MXN . Over the past week, the rate has remained stable at 0.058, showing minimal volatility . In the past 30 days, the peso has fluctuated between 0.057 and 0.058 USD, indicating a tight trading range .
Why It Matters Now
The peso’s current strength is significant for several reasons:
- Exporters face margin pressure as a stronger peso reduces the peso value of dollar-denominated revenues.
- Remittance recipients and the tourism sector may see reduced peso inflows per dollar.
- Monetary policy decisions hinge on exchange rate dynamics, especially as Banxico weighs inflation and growth.
Underlying Drivers of Peso Strength
U.S. Dollar Weakness & Carry Trade
In January 2026, the peso reached its strongest level since June 2024, touching 17.10 MXN per USD, buoyed by a weaker U.S. dollar and interest rate differentials that favor carry trade strategies . The U.S. dollar’s decline stems from political tensions, high debt levels, and criticism of the Federal Reserve, which have collectively undermined confidence in the greenback .
Interest Rate Differentials
Mexico’s central bank (Banxico) maintains a benchmark rate of 7%, while the U.S. Federal Reserve’s rate stands at 3.50–3.75% . This gap continues to attract carry trade flows, supporting the peso. Banxico has signaled openness to resuming rate cuts, but remains cautious amid inflation risks .
Forecasts: What’s Ahead for the Peso
Reuters Poll & Market Consensus
A Reuters poll forecasts the peso will trade within its decade-long range of 16–22 MXN per USD, centering around 18.92 MXN over the next 12 months . Analysts see a slight bias toward depreciation, citing weaker economic activity, remittance trends, and potential divergence between Banxico and the Fed .
UBS Projections
UBS has revised its outlook, expecting the peso to strengthen further. Its forecasts:
– Q1 2026: 18.4 MXN/USD (down from 18.8)
– Q2 2026: 18.7 MXN/USD (up from 18.5)
– Q3 2026: 18.5 MXN/USD
– Q4 2026: 18.2 MXN/USD
UBS notes that the peso’s structural strength is anchored by Mexico’s role as a key U.S. supplier, though USMCA renegotiations could introduce volatility .
Citi Survey Consensus
Citi’s January 2026 survey of 35 institutions forecasts:
– End-of-year 2026 exchange rate: 19 MXN/USD
– Range among forecasts: 17.10 to 20.30 MXN/USD
The median view anticipates a 5% depreciation of the peso by year-end. The survey also projects GDP growth of 1.3%, inflation at 4%, and Banxico’s rate easing to 6.5% by end-2026 .
El País Market Outlook
Market consensus expects the peso to trade in the 18–20 MXN/USD range in 2026, with a slight depreciation trend . Stability is attributed to moderated inflation, a still-restrictive monetary policy, and macroeconomic resilience .
Private Sector Forecasts
Analysts surveyed by Banxico expect the peso to end 2025 at 19.49 MXN/USD, improving to 20.02 MXN/USD in 2026 . These forecasts reflect cautious optimism, though external factors remain key.
Summary of Forecasts
| Source | End-2026 Forecast (MXN/USD) |
| Reuters Poll | ~18.92 |
| UBS | 18.2–18.7 |
| Citi Survey | ~19.0 (range: 17.10–20.30) |
| El País Consensus | 18–20 |
| Private Analysts | ~20.02 |
What to Watch Next
- U.S. Federal Reserve policy: Any shift in U.S. rates could alter carry trade flows and peso valuation.
- Banxico decisions: Rate cuts or pauses will influence interest rate differentials and capital flows.
- USMCA renegotiations: Outcomes could sway investor sentiment and peso stability.
- Remittances and tourism: These remain critical sources of foreign exchange for Mexico.
Conclusion
The Mexican peso is currently trading at 0.058 USD per peso, or 17.20 MXN per USD, reflecting recent strength driven by a weak U.S. dollar and favorable interest rate differentials. Forecasts for end-2026 range from 18.2 to 20 MXN per USD, with most analysts expecting modest depreciation. Key variables to monitor include central bank policies, U.S. monetary direction, and trade agreement developments.