Mexican Peso Advances in Volatile Session Ahead of Sheinbaum-AMLO Meeting
The slight recovery of the peso occurred during a session without significant indicators, as investors prepared for the U.S. inflation data.
The Mexican peso appreciated moderately against the dollar at the start of this week. The local currency advanced in a highly volatile session, driven by cautious trading among operators due to potential constitutional changes that Morena might push forward.
The exchange rate ended the day at 18.2930 pesos per dollar, compared to Friday’s close of 18.3628 pesos, based on official data from the Bank of Mexico (Banxico). This represents an appreciation of 6.98 centavos, or 0.38 percent.
The dollar’s price fluctuated widely, reaching a high of 18.6590 pesos, its highest level since March of last year, and a low of 18.2492 pesos. The Dollar Index (DXY), which measures the dollar against six currencies, rose 0.24% to 105.14 points.
Traders are closely watching the upcoming meeting between President Andrés Manuel López Obrador and his party’s successor, Claudia Sheinbaum Pardo, amid concerns about the power Morena has gained following the elections. The Mexican peso remains vulnerable to last week’s flows and, at the start of this week, reached levels as high as 18.66 pesos. Given the volatility, it could trade within a wide range of 17.80 to 19.40 pesos.
The slight recovery of the peso occurred during a session without significant indicators, as investors prepared for the U.S. inflation data for May and the Federal Reserve’s monetary policy decision, both set to be released on Wednesday.
Last week, the peso experienced its worst performance since the pandemic, with an accumulated loss of 8.2%, following the June 2 elections and fears that Morena and its allies might push through reforms that López Obrador has not yet achieved.
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