The Mexican peso starts the week with a moderate decline.

The local currency declined again, affected by persistent concerns over possible reforms, particularly a proposal to reform the justice system.

The Mexican peso depreciated against the US dollar at the start of this week. The local currency fell again, influenced by ongoing worries about potential reforms, especially a proposal to reform the justice system.

The exchange rate ended the session at 18.5447 units per dollar. Compared to 18.4632 units on Friday, based on official data from the Bank of Mexico (Banxico), this movement means a loss of 8.15 cents or 0.44 percent for the peso.

The dollar price fluctuated within an open range between a high of 18.6365 units and a low of 18.4321 units. The Dollar Index (DXY), which measures the greenback against a basket of six reference currencies, fell by 0.20% to 105.34 units.

Investors fear that changes to the justice system could weaken an important counterbalance to executive power. The main concern is that the new government of Morena and its allies could negatively impact the business climate in the country.

The peso starts the week under pressure. The session proceeded relatively calmly, despite traders following some Federal Reserve (Fed) members’ speeches at various forums. Markets will be watching closely for possible names and their narratives.

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Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.

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