On February 19, 2026, the Mexican peso experienced a decline of 0.33%, ending the day at 17.25 units per dollar. This drop marks the second consecutive day of depreciation for the currency, following a brief approach to the psychological barrier of 17 pesos per dollar, a level not seen since June 2024. Market reactions were influenced by recent economic data and shifts in monetary policy expectations, particularly in the context of inflation and interest rates.

The decline in the peso was further accentuated by developments from the Bank of Mexico (Banxico), whose recent minutes indicated that many governing board members are open to continuing the reduction of the key interest rate. Earlier in February 2026, Banxico had interrupted a lengthy cycle of monetary easing and revised upward its inflation forecasts, largely due to the implementation of higher taxes on certain products and tariffs on imports from China. These changes suggest a cautious approach from the bank as it navigates the balance between stimulating economic growth and controlling inflation.

Investor sentiment was further affected by data releases related to the U.S. economy, which could have broader implications for Mexico's export-driven economy. The interplay between domestic monetary policy and external economic factors highlights the ongoing challenges faced by the Mexican economy as it adapts to both local and international market conditions. The market's cautious response indicates a potential period of volatility as stakeholders assess the ramifications of these economic shifts for future currency stability and growth prospects in Mexico.