Puerto Vallarta, Jalisco, August 24, 2026 – The Mexican peso began Monday slightly weaker. At 6:30 a.m. Mexico City time, the wholesale USD/MXN rate stood at 16.9302 pesos per dollar.
The dollar was up 0.08% from the previous close of 16.9165, meaning the peso had lost roughly the same percentage. Early trading ranged from 16.8875 to 16.9428 pesos per dollar. Currency quotes can change throughout the session.
The move came as the broader dollar index gained 0.2% and investors took a more cautious position ahead of U.S. sanctions, inflation data and Federal Reserve commentary. Mexico also released new economic figures Monday morning.
Mexico inflation and GDP offer a mixed signal
Mexico’s annual inflation rate rose to 3.26% during the first half of August, up from 3.10% in the first half of July. Consumer prices increased 0.10% from the previous two-week period.
Core inflation, which excludes some volatile food and energy prices, eased slightly to 3.93% annually from 3.95%. Core prices rose 0.08% during the two-week period.
The country’s gross domestic product expanded 1.4% during the second quarter compared with the first three months of the year. That was a small downward revision from the preliminary estimate of 1.5%, but it confirmed a rebound from the 0.6% contraction recorded in the first quarter. GDP was 2.1% higher than a year earlier.
Separate monthly activity data showed that the Mexican economy contracted 0.1% in June from May while remaining 2.8% above its level a year earlier.
The figures do not point in one clear direction for the currency. Higher headline inflation can support expectations that Mexican interest rates will remain elevated, while the softer core reading and weak monthly activity reduce pressure for tighter policy. There was no sharp break in USD/MXN immediately after the releases.
Dollar strength sets the early tone
Monday’s peso decline was limited compared with its recent gains. USD/MXN has fallen about 3% over the past month and nearly 6% since the start of 2026, meaning the peso remains considerably stronger than it was earlier this year.
Global trading was defensive as the United States prepared to announce new sanctions against Iran. Oil futures fell about 2% after last week’s gains, while U.S. stock futures moved lower. The dollar benefited from demand for currencies viewed as more defensive during periods of uncertainty.
Markets are also waiting for the July U.S. personal income and spending report on Wednesday. It includes the Personal Consumption Expenditures price index, an inflation measure closely followed by the Federal Reserve.
Federal Reserve Chair Kevin Warsh is scheduled to deliver keynote remarks at Jackson Hole on Friday. Early Monday, markets were pricing in one quarter-point U.S. rate increase by the end of 2026. Expectations for higher U.S. rates can support the dollar, although those expectations can change quickly when new inflation or growth data arrives.
Banxico and trade talks remain in the frame
Minutes from Banco de México’s August meeting indicated that policymakers expect to keep the benchmark rate at 6.5% for some time. Officials remain concerned about persistent services inflation even as the stronger peso helps contain the cost of imported goods.
North American trade policy remains a background risk. Economy Minister Marcelo Ebrard said Friday that Mexico expected to reach trade understandings with the United States similar in some respects to those then being discussed with Canada.
Those U.S.-Canada talks later broke down, leading to new tariffs between the two countries. Mexico was not included in those tariff announcements, but the dispute adds uncertainty to its separate negotiations with Washington.
The Puerto Vallarta budget at 16.93
At the 16.93 wholesale rate, US$100 was equivalent to approximately MXN 1,693, while US$500 equaled about MXN 8,465 and US$1,000 equaled MXN 16,930.
Because the dollar is worth about 3% fewer pesos than it was a month ago, someone converting US$1,000 would receive roughly MXN 500 less than under late-July market rates. A person earning pesos and paying a dollar-denominated expense would see a similar reduction in the peso cost before fees.
For obligations denominated in dollars and payable in Mexico on August 24, Banco de México lists an official rate of 16.9583 pesos per dollar. The new August 24 FIX rate had not yet been published at 6:30 a.m.; the central bank normally releases it after noon.
The wholesale rate is a market reference. Banks, credit cards, ATMs, transfer services and Puerto Vallarta exchange counters apply their own spreads and fees, so the amount received or charged will differ from 16.93.
