The MND Peso Index™ for September: MXN is nearly 6% overvalued against USD
The MND Peso Index™ suggests that the USD:MXN exchange rate in early September — compared against prices for goods in various Mexican cities and in Dallas, Texas — overvalued the Mexican peso by 5.8%. The post The MND Peso Index™ for September: MXN is nearly 6% overvalued against USD appeared first on Mexico News Daily
In September 2026, the MND Peso Index™ revealed that the Mexican peso was nearly 6% overvalued against the US dollar, a significant increase from 2.4% in early August. The overvaluation was determined by comparing the prices of a standardized basket of 20 goods and services in Mexico and Dallas, Texas. The MND Peso Rate, calculated as the simple average of the 20 item-level implied exchange rates, came in at 17.96 pesos per dollar, while the Banxico FIX rate was 16.98 pesos per dollar on September 2.
This 5.8% overvaluation was the highest the MND Peso Index™ has ever recorded, surpassing the 4% overvaluation from May. The widening gap between the Banxico FIX rate and MND Peso Rate, caused by the peso's appreciation and an increase in the MND Peso Rate, led to the higher overvaluation assessment. Factors contributing to the peso's recent appreciation include US dollar weakness and carry trade demand for Mexico's currency.
The MND Peso Index™ has found the peso overvalued in April, May, June, August, and September of 2026, with the range of overvaluation assessments increasing by 3.4 percentage points.
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