# USD/MXN Forecast: Banxico Cut Narrows The Peso's Yield Advantage

> USD/MXN edged down 0.23% to 18.5992 on Monday as Mexican inflation rose more than expected to 3.75% year over year in October. Crédit Agricole forecasts the exchange rate at 19.00 by end-2026 and 20.00 by end-2027, citing the reduced peso carry advantage after Banxico cut its policy rate to 6.25% and uncertainty over trade.

- Date: 2026-11-09 · published 2026-11-09T18:09:06.022Z
- Category: macro · region Mexico · magnitude low
- Page: https://feedsoft.ai/events/89876-usd-mxn-forecast-banxico-cut-narrows-the-peso-s-yield-advantage
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

Lower Mexican interest rates and trade uncertainty may weaken the peso, raising the local-currency cost of imported feed and agricultural commodities. The firmer inflation reading may limit how far Banxico can cut rates, tempering that pressure.

## Read by commodity

- USDMXN: bullish ▲

## Sources

- exchangerates.org.uk: https://www.exchangerates.org.uk/news/47721/2026-11-09-usd-mxn-forecast-banxico-cut-narrows-the-peso-s-yield-advantage.html

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