The Mexican peso has plunged to a new yearly low against the US dollar in the currency markets this week. The USD/MXN pair shows the currency nosediving 1.50% boosting the greenback’s prospects in the forex markets. The peso is now trading at 20.04 and is attracting bullish sentiments in the charts.

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The DXY index, which measures the performance of the US dollar shows the greenback 103.59. Despite it being in the red, the peso failed to outperform the USD and traded below the greenback. The US dollar surged as Treasury yields jumped early this week giving it a boost in the currency markets.

Remittance in the Mexican peso experienced the largest drop in 11 years and is down 4.6% compared to last year. The depreciation of the Mexican peso could continue into the election cycle as uncertainty prevails in the broader market. The busy schedule on the American side is making the currency rise above the adversities.

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Currency: US Dollar Vs Mexican Peso

The Mexican peso drifted against the US dollar after the controversial judiciary reform which was enacted in September. The reorganization of the Supreme Court judges saw 8 out of 11 resignations, effective in August 2025. The disruption has pushed the currency into muddy waters as the ongoing legal procedures continue to trouble the country. Therefore, the US dollar could remain on top this year against the Mexican peso.

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On the home side, the US elections are making investors sit on the sidelines and watch out for market movements. Not everyone is going all-in as the market remains volatile due to the elections. Both presidential candidates Trump and Harris have different views about the economy. Read here to know how the markets will react if Trump clinches the election. If Harris wins the White House, read here to know how the markets will react.