# Mexican Peso drops as US growth, hot inflation rekindles Fed hike bets

> The Mexican peso fell over 1% to about 18.86 per dollar as US Q3 GDP grew 3.4% and September core PCE inflation rose to 3.1%. Money markets lowered the odds of a Fed hike to 76% after the Fed held rates unchanged.

- Date: 2026-10-29 · published 2026-10-29T12:00:00.000Z
- Category: macro · region Mexico · magnitude low
- Page: https://feedsoft.ai/events/17268-mexican-peso-drops-as-us-growth-hot-inflation-rekindles-fed-hike-bets
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A weaker peso lowers the cost of Mexican-denominated feed inputs in dollar terms only indirectly, but it signals firmer US rates and a stronger dollar that typically pressure dollar-priced grain and meal futures.

## Read by commodity

- DXY: bullish ▲
- USDMXN: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2016-11-18 | [Mexican peso falls despite rate hike, Fed action looms](https://feedsoft.ai/events/74115-mexican-peso-falls-despite-rate-hike-fed-action-looms.md) | +1.0% | +1.3% |
| DXY | 2026-10-08 | [Mexican Peso dives on solid US data despite rising inflation](https://feedsoft.ai/events/17274-mexican-peso-dives-on-solid-us-data-despite-rising-inflation.md) | +0.3% | — |
| DXY | 2023-04-28 | [US dollar firms as inflation data backs Fed hike; yen plunges](https://feedsoft.ai/events/36576-us-dollar-firms-as-inflation-data-backs-fed-hike-yen-plunges.md) | -0.3% | +1.2% |
| DXY | 2026-10-14 | [Dollar hits fresh 18-month high as hot inflation boosts Fed hike expectation](https://feedsoft.ai/events/649-dollar-hits-fresh-18-month-high-as-hot-inflation-boosts-fed-hike-expectation.md) | -0.3% | — |
| DXY | 2026-09-14 | [Copper Slips as Inflation Data Raises Bets on Fed Hiking Rates - Bloomberg](https://feedsoft.ai/events/17392-copper-slips-as-inflation-data-raises-bets-on-fed-hiking-rates-bloomberg.md) | +1.1% | +2.9% |

## Sources

- fxstreet.com: https://www.fxstreet.com/news/mexican-peso-drops-as-us-growth-hot-inflation-rekindles-fed-hike-bets-202610292127

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.