Mexican Peso Edges Up vs. Dollar in Week’s First Session
Investors now look ahead to Federal Reserve and Banxico meeting minutes, scheduled for release later this week, for further market guidance.
Quick overview
- The Mexican peso gained slightly against the U.S. dollar, closing at 19.2359 per dollar amid low liquidity due to the U.S. Memorial Day holiday.
- The peso's appreciation was influenced by President Trump's decision to delay tariffs on EU goods, marking its best level since early October.
- Despite thin trading conditions, the peso extended its winning streak to four sessions, with investors awaiting upcoming Federal Reserve and Banxico meeting minutes.
- The U.S. Supreme Court ruled in favor of the Federal Reserve, affirming that the president cannot dismiss its members, providing them with special protections.
The Mexican peso posted a marginal gain against the U.S. dollar on Monday, closing nearly unchanged in a low-liquidity session due to the U.S. Memorial Day holiday.
The local currency benefited from U.S. President Donald Trump’s announcement to postpone his threatened 50% tariffs on European Union goods until July 9.
The peso closed at 19.2359 per dollar, a slight appreciation of 0.02% from Friday’s 19.2398, according to data from Banco de México (Banxico). During the day, the exchange rate fluctuated between a high of 19.2504 and a low of 19.1835 pesos per dollar.
The U.S. dollar index (DXY), which measures the greenback against six major currencies, fell 0.12% to 98.99 points.
Trump’s tariff delay lifted the peso, pushing it briefly below the 19.20 support level and marking its best level since early October. Despite the holiday-induced thin trading and limited short-term direction, the peso extended its winning streak to four sessions.
Investors now look ahead to Federal Reserve and Banxico meeting minutes, scheduled for release later this week, for further market guidance.
New Chapter in Trump’s Clash with Fed Chair Powell
The ongoing battle between President Donald Trump and Federal Reserve Chair Jerome Powell took a new turn in favor of the central banker after the U.S. Supreme Court issued a ruling last Friday. The decision not only protects the Federal Reserve as an institution but also its chair, affirming that the president cannot fire members of the central bank.
“The Federal Reserve is a quasi-private entity with a unique structure that follows the distinctive historical tradition of the First and Second Banks of the United States,” the Supreme Court wrote, drawing a clear distinction between the central bank and other government agencies involved in the case.
This ruling comes amid a lawsuit seeking to lift injunctions preventing Trump from dismissing members of the National Labor Relations Board (NLRB) and the Merit Systems Protection Board (MSPB).
While the Supreme Court sided with Trump regarding the dismissals at these other agencies, it established special protections for Federal Reserve members.
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