# Weakened peso hits one-year low as US-Mexico rate gap narrows

> The peso closed at 18.71 per dollar on October 22, its weakest level since September 2025, down about 9.7% since early September. The decline is attributed to the narrowing Fed-Banxico rate gap, risk aversion tied to the US-Iran war, and USMCA uncertainty.

- Date: 2026-10-22 · published 2026-10-22T12:00:00.000Z
- Category: macro · region Mexico · magnitude low
- Page: https://feedsoft.ai/events/17269-weakened-peso-hits-one-year-low-as-us-mexico-rate-gap-narrows
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

A weaker peso makes Mexican imports of US feed grains and meal more expensive in local currency, which can dampen demand at the margin and weigh on US export prices.

## Read by commodity

- CORN: bearish ▼
- USDMXN: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2017-01-11 | [Mexican peso hits fresh lows ahead of Trump conference](https://feedsoft.ai/events/73212-mexican-peso-hits-fresh-lows-ahead-of-trump-conference.md) | +0.0% | +1.3% |
| CORN | 2024-05-01 | [US dollar modestly higher as sticky inflation persists, yen hits 34-year low](https://feedsoft.ai/events/12558-us-dollar-modestly-higher-as-sticky-inflation-persists-yen-hits-34-year-low.md) | +2.6% | +7.2% |
| CORN | 2016-11-17 | [Mexican peso briefly falls 1 percent vs. US dollar after central bank hikes rates](https://feedsoft.ai/events/74069-mexican-peso-briefly-falls-1-percent-vs-us-dollar-after-central-bank-hikes-rates.md) | +3.0% | +4.6% |
| CORN | 2024-11-28 | [BRL: Real hits four year low on fiscal concerns – ING — Elev8](https://feedsoft.ai/events/27616-brl-real-hits-four-year-low-on-fiscal-concerns-ing-elev8.md) | +1.1% | +6.9% |
| CORN | 2016-12-16 | [Dollar near 14-year highs after Fed tips more rate hikes](https://feedsoft.ai/events/6461-dollar-near-14-year-highs-after-fed-tips-more-rate-hikes.md) | -3.0% | -0.2% |

## Sources

- mexiconewsdaily.com: https://mexiconewsdaily.com/business/mexican-peso-dollar-weakened-year-low-rate-gap-narrows/

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