# Banxico and the Fed put the Mexican peso under pressure as the interest-rate differential hits a record low

> The interest-rate gap between Mexico and the United States narrowed to a record-low 225 basis points after Banxico cut its policy rate to 6.25%, while the Fed’s upper rate stood at 4.00%. A former Banxico deputy governor warned that the peso could weaken to 19 per dollar and said the central bank should monitor exchange-rate pressures and their potential effect on inflation.

- Date: 2026-11-06 · published 2026-11-06T09:10:01.731Z
- Category: macro · region Mexico · magnitude medium
- Page: https://feedsoft.ai/events/83675-banxico-and-the-fed-put-the-mexican-peso-under-pressure-as-the-interest-rate
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

A narrower yield advantage can reduce demand for peso-denominated assets and increase pressure on the currency. Peso depreciation could raise the cost of imports, including feed ingredients priced in dollars.

## Read by commodity

- USDMXN: bullish ▲

## Sources

- elceo.com: https://elceo.com/economia/banxico-fed-ponen-problemas-peso-mexicano-diferencial-minimos-historicos/

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