The Mexican peso depreciated against the U.S. Dollar on Wednesday, March 11, 2026, as global markets reacted to escalating geopolitical tensions in the Middle East. The currency closed the session at 17.66 pesos per dollar, a 0.45 percent or 7.95 centavo decline, according to data released by the Bank of Mexico (Banxico).
The weakening peso follows a period of relative strength at the start of the year, but analysts warn further depreciation is possible if the conflict between the United States, Israel and Iran persists. Gabriela Siller, director of economic analysis at Banco Base, stated that indicators suggest strong upward pressure on the exchange rate, leaving room for further peso depreciation before reaching oversold levels. “The exchange rate could remain in an oversold level sustainably if the war between the United States and Iran persists in the short term,” Siller said.
The current volatility is directly linked to the recent military actions involving the U.S. And Israel targeting Iranian military objectives over the weekend, resulting in the death of high-ranking Iranian officials, including Ayatollah Ali Jamenei, according to reports. This escalation has prompted investors to seek safe-haven assets, driving demand for the U.S. Dollar.
In bank transactions, the dollar was trading at 18.14 pesos as of Wednesday, according to Banamex data. The dollar index (dxy), which measures the strength of the U.S. Dollar against a basket of six major currencies, rose 0.40 percent to 99.22 points. The Bloomberg dollar index (bbdxy) increased by 0.22 percent to 1,202.88 points.
Yields on U.S. 10-year bonds currently stand at 4.20 percent, while Mexican 10-year bonds remain at 9.03 percent. Several emerging market currencies as well experienced depreciation, including the South African rand (1.25 percent), the South Korean won (0.70 percent), the Chilean peso (0.68 percent), the Hungarian forint (0.43 percent), and the Thai baht (0.38 percent).
The peso’s performance is being closely monitored by Banxico, but the central bank has not yet signaled any immediate policy response. Further developments in the geopolitical situation and any potential shifts in U.S. Monetary policy will likely be key determinants of the peso’s trajectory in the coming weeks.
