Mexican Peso Edges Higher Against the Dollar; Posts Weekly Gain
The U.S. Dollar Index (DXY), which measures the greenback against six major currencies, was up 0.10% at 99.28 points.
Quick overview
- The Mexican peso strengthened slightly against the dollar, closing at 18.3102 pesos per dollar.
- Market volatility was influenced by uncertainty surrounding upcoming U.S. economic indicators after a federal government shutdown.
- The peso appreciated by 0.80% over the week, marking its strongest level in six weeks.
- Investors are closely monitoring expectations for potential Federal Reserve rate cuts amid the lack of fresh economic data.
The peso strengthened slightly today in choppy trading, amid uncertainty over the release of U.S. economic indicators following the end of a prolonged federal government shutdown.
The Mexican peso gained against the dollar at the end of the week. The local currency appreciated modestly in an erratic market, weighed by doubts about upcoming U.S. data releases after the long federal shutdown.
The exchange rate closed the session at 18.3102 pesos per dollar. Compared with yesterday’s close of 18.3215, according to official data from Banco de México (Banxico), the peso improved by 1.13 centavos, or 0.06%.
During the session, the dollar traded between a high of 18.4049 and a low of 18.3013 pesos. The U.S. Dollar Index (DXY), which measures the greenback against six major currencies, was up 0.10% at 99.28 points.
Market Context
Investors continued to assess the likelihood that the Federal Reserve will cut rates for a third consecutive time in December—an expectation clouded by the lack of fresh data following the government shutdown and by comments from Fed officials.
White House economic adviser Kevin Hassett said yesterday that the administration will release the long-awaited October employment report; however, it will not include unemployment rate figures, a key metric for monetary policy decisions.
In the coming days, the Mexican peso is expected to remain within a tight 18.25–18.40 range, with volatile swings depending on expectations around the Fed, U.S. activity data, and local political developments.
Despite market uncertainty, the weekly performance was positive compared with last Friday’s close of 18.4573. Over the week, the peso gained 14.71 centavos, equivalent to 0.80%, touching its strongest level in six weeks.
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