The Mexican peso continues to decline due to local concerns.

The Mexican peso depreciated significantly against the dollar on Tuesday, driven by concerns over potential constitutional changes by Morena that could negatively impact the business environment.

The exchange rate ended the day at 18.4879 pesos per dollar, compared to an official closing of 18.2930 pesos yesterday, according to data from the Bank of Mexico (Banxico). This represented a loss for the peso of 19.49 centavos, equivalent to 1.07 percent.

The dollar’s price fluctuated within a broad range, reaching a high of 18.5650 pesos and a low of 18.3086 pesos. The U.S. Dollar Index (DXY) from the Intercontinental Exchange, which measures the greenback against a basket of six major currencies, gained 0.05% to 105.20 points.

Mexico’s future president, Claudia Sheinbaum, announced yesterday that she plans to continue with the reform initiatives pushed by current president Andrés Manuel López Obrador, including the highly controversial judicial reform.

“Investors are acting cautiously, and the peso is depreciating, hovering around 18.45 per dollar. Speculation remains under the shadow of reforms, and traders are liquidating positions in the local currency,” said José Feliciano González, a professor at EBC.

In the morning, the peso briefly weakened to 18.4980 after López Obrador called for the approval of the changes and downplayed market concerns. After the market closed, the price further advanced to above 18.6039 pesos per dollar.