Mexican Peso Holds Steady Against the Dollar, Capping a Week of Gains
In addition to trade headlines, investors are eyeing next Wednesday's U.S. Federal Reserve policy decision.
Quick overview
- The Mexican peso gained slightly against the U.S. dollar, closing at 18.5469 pesos per dollar.
- This week, the peso appreciated by 0.98%, supported by positive trade sentiment following a U.S.-Japan agreement.
- Mexican stock markets also rose, with the benchmark S&P/BMV IPC increasing by 0.50% to 57,323.14 points.
- Investors are closely monitoring upcoming U.S. Federal Reserve policy decisions and Mexico's second-quarter GDP figures.
The Mexican peso posted a slight gain against the U.S. dollar on Friday, capping a week of positive performance. The appreciation came as markets remain watchful of trade negotiations between the United States and its partners, just days ahead of the tariff deadline set for next Friday.
The exchange rate closed the session at 18.5469 pesos per dollar, compared to 18.5548 on Thursday, according to official data from the Bank of Mexico (Banxico). This marks a marginal gain of 0.04%—less than one cent—for the local currency.
The dollar traded in a range between a high of 18.5942 and a low of 18.5243 pesos. Meanwhile, the U.S. Dollar Index (DXY), which measures the greenback against six major currencies, rose 0.17% to 97.66 points. Technically, the peso continues to consolidate below the psychological threshold of 19 per dollar, with key support remaining near the annual low of 18.5525.
In addition to trade headlines, investors are eyeing next Wednesday’s U.S. Federal Reserve policy decision, while in Mexico, second-quarter GDP figures are expected next week.
Weekly Gains
On a weekly basis, the peso delivered a solid performance. Compared to last Friday’s official close of 18.7312, the currency gained 18.43 centavos, or 0.98%, helped by improved sentiment following the announcement of a trade agreement between the U.S. and Japan.
Mexican Stock Markets Rise
Mexican equities also closed higher on Friday. Local indexes logged their third consecutive session of gains, buoyed by strong earnings from Bimbo, and ended the week in positive territory.
The benchmark S&P/BMV IPC, which tracks the most traded stocks on the Mexican Stock Exchange (BMV), climbed 0.50% to 57,323.14 points. The FTSE BIVA, the main index of the Institutional Stock Exchange (Biva), rose 0.36% to 1,152.38 points.
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