The Mexican peso appreciated against the US dollar for a fifth consecutive trading day on Thursday, closing at 17.65 to the greenback, according to the Bank of Mexico.

The peso is currently at its strongest level since July 12, 2024, when it closed at 17.62 to the dollar.

On Thursday, the peso appreciated 0.92% after closing at 17.81 to the dollar on Wednesday.

Over the past five trading days, the peso has gained around 1.9% against the greenback. So far in 2026, it has appreciated just over 2%. In 2025, the peso appreciated almost 16% against the dollar, defying the expectations of many economists, analysts and other observers.

On Thursday morning, Banco Base’s director of economic analysis Gabriela Siller wrote on X that the peso was appreciating due to “1) the weakness of the dollar, 2) carry trade operations (due to the interest rate differential between Mexico and the US and between Mexico and Japan), and 3) the rise in the price of silver.”

In a separate post, Siller wrote that President Sheinbaum’s remarks about the National Electoral Institute maintaining its autonomy “generated optimism about Mexico.”

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The federal government is planning a wide-ranging electoral reform that will likely be submitted to Congress next month.

The peso has appreciated this week even though U.S. President Donald Trump cast some doubt over the future of the USMCA by asserting on Tuesday that the free trade pact provides “no real advantage” to the United States and is “irrelevant” to him.

Paula Chaves, a financial markets analyst with the firm HF Markets, said that when the USMCA is “questioned” the interpretation of the market is that the risk is greater for the United States than for Mexico.

“The predominant reaction is a reduction in exposure to the dollar,” she said.

Chaves also said that the “market recognizes that the USMCA” — which will undergo a formal review process this year — is “strategic for Mexico and the United States.”

“Weakening it would imply significant costs, particularly in terms of competitiveness and productive efficiency,” she said.

With reports from El Economista