The Mexican peso advanced slightly against the U.S. dollar on Wednesday, the final trading session of the year, positioning the currency to close its strongest year on record. Supported by a softer dollar and stable macroeconomic management, the peso is on track to post annual gains exceeding 13%, despite thin liquidity and a lack of major economic releases.
The spot exchange rate was quoted at 17.9781 pesos per dollar, compared with Tuesday’s close of 17.9959, according to data from Banco de México (Banxico). This move represented a gain of 1.78 centavos, or roughly 0.10%, underscoring the peso’s resilience into year-end trading.
Intraday price action saw the dollar trade within a narrow range, touching a high of 18.0131 pesos and a low of 17.9543. Meanwhile, the U.S. Dollar Index (DXY) rose modestly by 0.13% to 98.36 points, indicating limited dollar strength across global markets.
Peso outperforms on dollar weakness and policy stability
Throughout 2025, the peso has been one of the standout performers among emerging market currencies. Its appreciation has been largely driven by sustained dollar weakness, a series of interest-rate cuts by the Federal Reserve, and Mexico’s pragmatic approach to managing trade and diplomatic relations with the United States.
This balanced strategy has helped insulate the currency from renewed political pressure linked to President Donald Trump, limiting volatility and supporting investor confidence despite lingering geopolitical risks.
Final U.S. data shapes thin year-end trading
The final major U.S. economic release of the year showed initial jobless claims falling by 16,000 to a seasonally adjusted 199,000 in the week ending December 27, well below market expectations of 220,000. The data were published a day earlier than usual due to reduced government activity ahead of the New Year holiday.
With market participation sharply reduced and liquidity thinning, trading conditions remain subdued, making significant price swings unlikely. Within this low-volume environment, the peso has found modest support as investors digest the U.S. labor data as the final macroeconomic signal of 2025.
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