# Mexican Peso enters 2026 strong, but carry and USMCA risks loom large

> FXStreet reports the peso gained about 23% against the dollar in 2025, driven by dollar weakness, carry trade inflows and domestic fundamentals, reaching 17.88 per dollar in late December. The outlook flags Banxico easing, possible Bank of Japan hikes, carry trade unwinding and USMCA review risks as sources of volatility in 2026.

- Date: 2025-12-24 · published 2025-12-24T12:00:00.000Z
- Category: macro · region Mexico · magnitude low
- Page: https://feedsoft.ai/events/21728-mexican-peso-enters-2026-strong-but-carry-and-usmca-risks-loom-large
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

Risks of carry trade unwinding and USMCA tensions could push the peso weaker, raising the cost of dollar-priced feed imports for Mexican buyers. The effect on feed prices depends on how far the currency moves.

## Read by commodity

- USDMXN: neutral

## Sources

- fxstreet.com: https://www.fxstreet.com/analysis/usd-mxn-price-annual-forecast-peso-poised-for-a-volatile-2026-after-stellar-2025-rally-202512241829

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