Mexican Peso Weakens Against Dollar Ahead of Powell Speech
Traders are watching closely for signals on the central bank’s next steps, in a week that also features the release of the Fed’s minutes.
Quick overview
- The Mexican peso weakened against the U.S. dollar for the second consecutive day, closing at 18.8176 pesos per dollar.
- Market sentiment is cautious as traders await Federal Reserve Chair Jerome Powell's speech at the Jackson Hole symposium later this week.
- The U.S. Dollar Index rose slightly, reflecting increased strength in the dollar amid anticipation of Powell's remarks.
- Investors are also focused on Banxico's monetary policy minutes and upcoming economic data from Mexico.
The Mexican peso weakened against the U.S. dollar in Tuesday trading, posting its second consecutive decline amid cautious sentiment as markets await Federal Reserve Chair Jerome Powell’s speech later this week.
The spot exchange rate stood at 18.8176 pesos per dollar, compared with Monday’s close of 18.7807, according to official data from the Bank of Mexico (Banxico). The move represented a loss of 3.69 centavos, or 0.20% for the peso.
During the session, the dollar traded in a range between 18.8678 and 18.7743 pesos. Meanwhile, the U.S. Dollar Index (DXY), which measures the greenback against a basket of six major currencies, edged up 0.11% to 98.28.
Powell is scheduled to speak Friday at the Federal Reserve’s annual Jackson Hole symposium. Traders are watching closely for signals on the central bank’s next steps, in a week that also features the release of the Fed’s meeting minutes. With no major U.S. economic indicators on Tuesday, the dollar gained strength in anticipation of Powell’s remarks.
Analysts noted that investors are also digesting the outcome of a meeting held a day earlier between U.S. President Donald Trump, Ukrainian President Volodymyr Zelensky, and European leaders, aimed at finding a resolution to the conflict with Russia.
On the domestic front, attention remains on Banxico’s monetary policy minutes, as well as upcoming releases of Mexico’s second-quarter GDP and mid-August inflation figures.
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