The Mexican currency advances amid a global retreat of the dollar in a session with few relevant economic references, while investors continue to assimilate the most recent data.

The Mexican peso is moderately appreciating against the dollar this Friday morning. The local currency is advancing due to a global dollar retreat in a session with limited relevant economic references, while investors continue to assimilate the most recent data.

The spot exchange rate stands at 17.1006 pesos per dollar. Compared to yesterday’s closing rate of 17.1106 units, as reported by the Bank of Mexico (Banxico), this movement reflects a one-cent improvement for the currency, representing a 0.06 percent appreciation.

The dollar price is operating within a narrow range, fluctuating between a maximum of 17.1580 units and a minimum of 17.0695 pesos. The Dollar Index (DXY), maintained by the Intercontinental Exchange, which compares the dollar against a basket of six strong reference currencies, has declined by 0.11 percent, currently standing at 103.85 points.

In the local context, the most recent inflation and economic growth figures for Mexico have strengthened the arguments for Banxico to lower its benchmark interest rate at its upcoming meeting in March. If implemented, this would mark the first interest rate cut since 2021.

While awaiting further references that establish a trend, the exchange rate remains volatile within the narrow range observed in recent weeks. For today’s session, it is expected that the currency will fluctuate between a maximum of 17.17 pesos and a minimum of 17.04 pesos, according to most banks.

This incident occurs in a context where President Andrés Manuel López Obrador asserted on Friday that it was not a mistake to disclose the personal number of New York Times correspondent Natalie Kitroeff. This came after the U.S. newspaper published an investigation linking family members and collaborators of the president to narcotrafficking.

In response to this situation, López Obrador denied the allegations from a DEA (U.S. anti-narcotics agency) investigation and demanded that the Joe Biden administration clarify the matter.