Peso Surge Hits American Vacation Budgets in Los Cabos

For decades, American tourists have flocked to Los Cabos thanks in part to the favorable exchange rate. However, this year's surge of the Mexican peso has changed the game.

The peso has appreciated nearly 6% in 2023 alone, reaching a high of 16.9 against the US dollar. This strong currency shift can impact American travelers' vacation budgets, especially when venturing off-property.

All-inclusive resorts typically price packages in US dollars for American customers, shielding them from exchange rate fluctuations. However, once outside the resort bubble, a stronger peso means fewer pesos per dollar spent on local expenses like meals and taxi rides.

To navigate this shift, travelers can use travel credit cards with zero foreign transaction fees or withdraw local pesos directly from secure bank ATMs for smaller purchases.