07:15 AM EST, 11/20/2025 (MT Newswires) -- The Mexican peso (MNX) has performed impressively this year, lagging behind only a few other currencies, said Commerzbank.

Above all, the good relationship between the Mexican president and her United States counterpart has bolstered the currency by pricing out major tariff risks, wrote the bank in a note to clients.

Nevertheless, Commerzbank remains skeptical about the coming year, despite the interest rate cuts the bank expects from the Federal Reserve.

Mexican growth is unlikely to recover significantly, and the country's central bank (Banxico) is likely to deliver more interest rate cuts than anticipated, according to Commerzbank.