# The Mexican peso shakes off Banxico’s blow, but the carry trade loses appeal

> The peso appreciated 0.33% to MXN 18.685 per dollar on Friday morning, recovering after the previous day’s unexpected 25-basis-point Banxico rate cut to 6.25%. Support came from the US midterm election result and stronger-than-expected US employment data, even as the broad dollar strengthened.

- Date: 2026-11-06 · published 2026-11-06T15:10:31.492Z
- Category: macro · region Mexico · magnitude low
- Page: https://feedsoft.ai/events/84148-the-mexican-peso-shakes-off-banxico-s-blow-but-the-carry-trade-loses-appeal
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

The cut narrows the interest-rate gap that has supported peso carry trades, potentially weakening demand for the currency and increasing its sensitivity to external conditions. Peso weakness would raise the local cost of imported feed and other dollar-priced goods.

## Read by commodity

- USDMXN: bullish ▲

## Sources

- cronista.com: https://www.cronista.com/mexico/dolar-peso-mexicano/peso-mexicano-recupera-terreno-frente-al-dolar-tras-el-recorte-de-banxico-y-dato-de-empleo-en-eeuu/

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