The Mexican Peso extended its losses against the US Dollar on Thursday after the Bank of Mexico (Banxico) held the benchmark interest rate unchanged at 6.50%, disregarding the interest rate differential as a primary factor in setting monetary policy.

On Thursday, the Bank of Mexico, also known as Banxico, decided to hold interest rates unchanged at 6.50% for the fourth time, as expected, in a unanimous vote.

The US Dollar (USD) has traded with gains for the fourth consecutive day on Thursday, managing to revisit levels last seen in late July.

USD/JPY extends its advance for a fifth consecutive day on Thursday as broad US Dollar (USD) strength and persistent pressure on the Japanese Yen (JPY) keep the pair firmly supported.

Scotiabank strategists Shaun Osborne and Eric Theoret note the Euro (EUR) remains soft as front-end spreads widen and European Union (EU) concerns persist over a possible US diesel export ban, despite official denials.

The Pound Sterling drops for the fourth straight trading day versus the US Dollar, down 0.21% as Federal Reserve officials remain hawkish, while US jobs data shows the strength of the labor market. The GBP/USD trades at 1.3213 after hitting a daily high of 1.3256.

NZD/USD trades around 0.5655 at the time of writing on Thursday, down 0.30% on the day. However, the pair limits its losses as the New Zealand Dollar (NZD) benefits from a sharp increase in expectations of further monetary tightening by the Reserve Bank of New Zealand (RBNZ).

USD/CAD extends its advance on Thursday, climbing to its highest level since mid-July. The pair has posted only one daily decline over the past 12 trading days, reflecting the diverging monetary policy outlooks of the Federal Reserve (Fed) and the Bank of Canada (BoC).

EUR/USD hovers near a two-month low on Thursday as expectations of another Federal Reserve (Fed) interest-rate hike keep the US Dollar (USD) firmly supported. At the time of writing, the pair trades around 1.1372, remaining on the back foot for a fourth consecutive day.

AUD/USD trims its losses on Thursday and trades around 0.7030 at the time of writing, down 0.15% on the day.

Commerzbank’s Thu Lan Nguyen argues that the unanimous Federal Reserve rate hike has temporarily restored its credibility and supported the Dollar, prompting a cut in the EUR/USD year-end forecast to 1.15 from 1.17.

USD/CHF climbs to its highest level since May 2025 on Thursday as the Swiss Franc (CHF) weakens across the board following the Swiss National Bank’s (SNB) decision to leave its policy rate unchanged at 0%.

Rabobank's Senior FX Strategist Jane Foley discusses EUR/USD trading near its yearly lows despite consensus forecasts that had expected the pair around 1.18–1.20 in late 2026.

GBP/JPY rebounds on Thursday, supported mainly by broad-based weakness in the Japanese Yen (JPY) rather than strength in the British Pound (GBP), as traders assess the monetary policy outlooks of the Bank of Japan (BoJ) and the Bank of England (BoE).

The Canadian Dollar (CAD) extends losses for the fourth consecutive day against the US Dollar (USD) on Thursday, as surging US Treasury yields and rising bets of Federal Reserve (Fed) rate hikes are propelling the Greenback across the board.

EUR/JPY trades higher around 180.55 on Thursday, gaining 0.19% on the day at the time of writing.

Brown Brothers Harriman’s (BBH) Elias Haddad observes AUD/USD trading near its 200-day moving average support as broad Dollar strength weighs on the pair.

The British Pound (GBP) is down 0.12% to near 1.3225 against the US Dollar (USD) during the European trading session on Thursday.

Societe Generale analysts, including Kenneth Broux, note that USD/MXN has broken above a multi-month descending trend line and reclaimed its 200-day moving average for the first time since April 2025.

Francesco Pesole at ING argues EUR/USD’s break below 1.140 has pushed the pair into stretched undervaluation versus their short-term fair value model, as rate differentials moved in favour of the Euro.

EUR/CHF gains 0.24% on Thursday and trades around 0.9415 at the time of writing, after reaching an intraday high of 0.9433 following the Swiss National Bank’s (SNB) monetary policy decision.

Rabobank’s Mauricio Une and Renan Alves note that the Federal Reserve (Fed) raised rates by 25 bps and signaled a more restrictive stance, while Copom cut the Selic rate to 13.75%. The Brazilian Real (BRL) weakened slightly to BRL 5.1462 per USD but still outperformed most emerging peers.

The Euro (EUR) holds gains against the British Pound (GBP) on Thursday, as the EUR/GBP flirts with the 0.8600 area, just below three-month highs, at 0.8607, following a 0.3% appreciation so far this week.

The Euro (EUR) faces slight selling pressure against the US Dollar (USD), retreating from intraday high of around 1.1400 to near 1.1380 as the Greenback rises, following hawkish remarks from New York Federal Reserve (Fed) Bank John Willams, who is a permanent voting member.

Derek Halpenny at MUFG argues that widening French OAT/Bund spreads and global fixed income risk aversion are adding to negative momentum for the Euro. Political and fiscal uncertainties in France, including a large planned consolidation and budget risks, weigh on sentiment.

The Swiss Franc (CHF) has given back previous gains against the US Dollar (USD) on Thursday, and fell to fresh four-month lows following the Swiss National Bank’s (SNB) monetary policy decision.

The Australian Dollar (AUD) recovers a majority of its early losses against the US Dollar (USD) on Thursday. In early European session, the AUD/USD pair is marginally down to near 0.7035.

MUFG’s Teppei Ino reviews recent USD/JPY price action, noting the pair opened near 153.41 before US Dollar (USD) buying ahead of the Federal Open Market Committee (FOMC) and Bank of Japan (BoJ) meetings lifted it above 157.50.

Here is what you need to know on Thursday, September 24:

NZD/USD inches higher after posting modest losses in the previous day, trading around 0.5680 during European hours on Thursday. The pair is appreciating as the New Zealand Dollar gains momentum, driven by growing expectations of further monetary tightening by the Reserve Bank of New Zealand.