The Mexican Peso extends its fall after the election and touches the zone above 18 units

The spot exchange rate is at 17.8257 pesos per dollar. Compared to yesterday's closing rate of 17.7141 pesos.

Ignacio Teson•Tuesday, June 4, 2024•1 min read

The exchange rate exceeded the 18 pesos per dollar mark for the first time since October, extending the nervousness observed on Monday following Morena’s electoral victory.

The Mexican peso depreciated on Tuesday morning, continuing the nervous trend seen yesterday after Morena secured a significant win in the presidential and congressional elections.

The spot exchange rate is at 17.8257 pesos per dollar. Compared to yesterday’s closing rate of 17.7141 pesos by the Bank of Mexico (Banxico), this represents a loss of 11.16 centavos or 0.63 percent for the peso.

The dollar is trading within a range between a high of 18.1953 pesos (the worst level since October) and a low of 17.5438 pesos. The Dollar Index (DXY), which measures the greenback against six major currencies, is up 0.09% at 104.24.

USD/MXN

The exchange rate surpassed the 18 pesos mark for the first time since October due to the continuation of Monday’s market anxiety, prompting a statement from the current Finance Minister, Rogelio Ramírez, who will remain in office.

The peso, which had strengthened against the dollar in recent months, dropped 4% on Monday in its worst day since the pandemic, following the announcement of Claudia Sheinbaum’s victory and Morena’s and its allies’ dominance in Congress.

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ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.