The Mexican Peso (MXN) is expected to maintain a stable range throughout 2026, with analysts suggesting the MXN will trade between 16.00 and 22.00 per U.S. dollar. This pattern has been consistent since July 2015. UBS has recently revised its USD/MXN forecast, projecting the peso to strengthen thanks to easing policies from the Federal Reserve. Specifically, they expect rates of 18.4 in Q1 2026, 18.7 in Q2, followed by slight declines to 18.5 and 18.2 in the subsequent quarters.
In a similar vein, Monex predicts the peso will finish 2025 at 18.15 per dollar and trade around 19.00 by the end of 2026. This outlook hinges on anticipated economic recovery and fewer cuts to Mexico's benchmark interest rate by the central bank, Banxico.
However, potential risks loom over this positive outlook. Analysts warn that factors like slower economic growth, weakened remittances, and disparities between Mexico's central bank and the U.S. Federal Reserve could push the peso into slight depreciation in 2026.
Current price data shows the MXN to USD trading at 0.055596, which is 1.7% higher than its three-month average of 0.054674. It has fluctuated within a stable range of 4.5%, reaching between 0.053496 and 0.055898. The MXN to EUR stands at 0.047313, about 0.8% above the three-month average, within a narrow range of 2.6%. Meanwhile, the MXN to GBP is trading just above its three-month average as well, showing stability within a 3.7% range. Notably, the MXN to JPY is performing strongly, currently at 8.7144, which is 3.2% above its average and has demonstrated a more volatile range of 9.3%.
These insights indicate that while the Mexican Peso is expected to remain relatively stable, fluctuations influenced by both domestic and international economic policies are likely. For further insights, consider watching the video discussing the future of the Mexican Peso in detail.
