The Mexican peso depreciates against the dollar in a crucial week.

The Mexican peso has abruptly halted its advance against the US dollar. However, it is still one of the best gainers from Emerging Markets in yearly terms.

At the beginning of the session this Tuesday, March 19th, the dollar’s price is rising again and heading towards the 17.00 mark in a crucial week where investors are awaiting decisions from the Federal Reserve of the United States (Fed) and the Bank of Mexico (Banxico) regarding monetary policy.

The exchange rate from dollar to Mexican pesos, stood at 16.92 units, representing a 0.57% depreciation of the local currency. Thus, the local currency is experiencing its second consecutive day of losses after closing with a loss of 0.79% in the previous session, according to real-time data.

Yesterday, the currency experienced depreciation driven by an advance of the DXY, while investors await the monetary policy meetings of the Fed and Banxico in the coming days; today the currency continues its upward trend.

Meanwhile, the dollar index, which measures the evolution of this currency against a basket of six other major currencies, showed an increase of 0.47%, reaching 103.92 units and marking its fourth consecutive day of gains.

On the other hand, the “superpeso” (the Mexican peso’s nickname due to significant appreciation) touched a level not seen in eight months on March 15th, dropping below $16.70, its lowest level in 2024.

The strengthening of the dollar is due to speculation about a more patient Federal Reserve in cutting its interest rate. Despite this, the Mexican peso has strengthened by 1.7% against the US dollar in the month.

Furthermore, markets are operating cautiously this Tuesday as the Bank of Japan raises its interest rates for the first time in 17 years. Additionally, Nvidia unveiled new chips to expand its dominance in artificial intelligence computing, while bitcoin extends its decline amid reduced expectations of interest rate cuts by the Federal Reserve.

ABOUT THE AUTHOR See More

Gabriel Micillo

Gabriel is a certified public accountant graduated from UNNE (National University of the Northeast, Argentina) and a software developer, currently pursuing a Master's degree in Finance and Economics. With nearly 8 years of experience working for accounting firms and brokerage firms. Concurrently, he has produced economic and financial reports on the current state of regional economies for the clients of the establishments where he has worked. Additionally, he assisted colleagues like Ignacio Teson in the drafting and editing of articles on similar topics in English language.

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