Overview
- Banco de México left its policy rate unchanged at 7% after 12 consecutive cuts, with a unanimous Governing Board vote.
- Analysts said the updated guidance was interpreted as a pause to the easing cycle, with the rate seen within a neutral range and future moves to be reassessed.
- The peso traded around 17.30–17.37 per dollar this week, ranking among top emerging‑market gainers at times but facing elevated short‑term volatility.
- Investors trimmed peso positions and adjusted portfolios ahead of the decision, and some expect a 17.30–17.50 trading band while awaiting clearer policy signals.
- Dollar swings driven by U.S. manufacturing surprises and a multi‑day federal shutdown influenced intraday peso moves, contributing to recent FX churn.