Peso Slides to 17.68 Per Dollar Following FED Rate Hike
What happened
The Mexican peso closed at 17.6760 per US dollar on September 27, 2026, a decline from approximately 16.87 seen in early September. This movement followed the Federal Reserve's rate hike on September 16, which narrowed the US–Mexico rate gap and reportedly dulled the carry trade that had supported the peso. The country's economy was noted to be valued at about US$1.83 trillion in 2025.
From riotimesonline.com
Why it matters
The peso is tied to the US and Canada through the USMCA trade pact. The slide means that for those holding pesos, the currency experienced a quiet devaluation of about 5 percent since early September. This shift impacts the value of dollar-denominated earnings and trade flows.
From riotimesonline.com
Who's involved
- FEDCentral bank whose policy actions affect the currency valuation of the peso.
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The entities involved
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FED
business
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World Bank
international financial institution
Related events
- Growing prospects of a Federal Reserve rate hike are being discussed, driven by the strength of the dollar index.
- Fed rate hike tightening is widening the interest rate gap and boosting dollar demand.
- Fear of the Federal Reserve raising interest rates is impacting the local economy of New Mexico.
- Trade war complicates the Fed's decision on rate cuts as Trump threatens to raise auto tariffs on Canadian imports.
- Fed rate hikes are squeezing Chipotle Mexican Grill's margins and sales.