# Mexican Peso selloff deepens as Fed hawks drive USD/MXN toward 17.50

> The Mexican peso weakened further as USD/MXN reached about 17.50, its highest in nearly two months, on September 23. The US Dollar Index rose above 101 after strong US PMI data and Fed speakers signaled more tightening. Markets priced in roughly 93 basis points of Fed tightening by the end of 2027.

- Date: 2026-09-23 · published 2026-09-23T12:00:00.000Z
- Category: macro · region Mexico · magnitude low
- Page: https://feedsoft.ai/events/17688-mexican-peso-selloff-deepens-as-fed-hawks-drive-usd-mxn-toward-17-50
- 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 stronger dollar makes US commodity exports cheaper for foreign buyers but raises Mexican import costs for feed. Fed tightening expectations drive this move rather than any change in crop supply.

## Read by commodity

- DXY: bullish ▲
- USDMXN: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2020-04-16 | [USD/MXN Price Analysis: Mexican peso drops as Fitch downgrades Mexico to BBB- — Octa](https://feedsoft.ai/events/53856-usd-mxn-price-analysis-mexican-peso-drops-as-fitch-downgrades-mexico-to-bbb-octa.md) | +0.7% | +0.4% |
| DXY | 2026-09-24 | [Mexican Peso slides to April lows as Banxico shrugs off Fed gap](https://feedsoft.ai/events/17687-mexican-peso-slides-to-april-lows-as-banxico-shrugs-off-fed-gap.md) | +0.7% | +1.0% |
| DXY | 2026-10-15 | [Mexican Peso strikes back as hot US PPI fails to lift Dollar](https://feedsoft.ai/events/17273-mexican-peso-strikes-back-as-hot-us-ppi-fails-to-lift-dollar.md) | -0.5% | — |
| 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 | 2024-04-26 | [Mexican Peso profits from US data turmoil](https://feedsoft.ai/events/30952-mexican-peso-profits-from-us-data-turmoil.md) | -0.3% | -0.9% |

## Sources

- fxstreet.com: https://www.fxstreet.com/news/mexican-peso-selloff-deepens-as-fed-hawks-drive-usd-mxn-toward-1750-202609232057

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