
Banxico unexpectedly cut its benchmark rate by 25 basis points to 6.25%, reducing the yield advantage of Mexican investments as US rates may rise. Analyst Gabriela Siller said the peso could reach 19 per dollar before the end of 2026 and 19.50 in 2027 if US rates keep rising or risks to Mexico’s economy materialize.
A smaller Mexico-US interest-rate differential could prompt investors to shift funds toward dollar assets, weakening the peso. A weaker peso raises the local-currency cost of imported feed and agricultural commodities.
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