Mexican Peso Resumes Downward Trend Amid Strong Dollar; Set for a Week of Losses

The Mexican peso is trading lower this Friday morning, resuming its losing streak observed after the June 2 elections due to persistent nervousness following Morena’s decisive victory in the presidential and congressional elections.

The spot exchange rate is at 18.5026 pesos per dollar. Compared to a close of 18.4732 pesos yesterday, according to data from the Bank of Mexico (Banxico), this represents a depreciation of 3 cents or 0.16%.

The dollar is trading in an open range between a high of 18.6830 pesos and a low of 18.3920 pesos. The Dollar Index (DXY) from the Intercontinental Exchange, which measures the greenback against six major currencies, is up 0.48% at 105.70 points.

Investors fear that having a qualified majority in Congress could make it easier for the next president, Claudia Sheinbaum, to pursue constitutional changes that President Andrés Manuel López Obrador was unable to achieve.

Government officials, including President López Obrador, have downplayed the currency’s recent depreciation, which has accumulated around a 9% drop since the day before the election.

This week is shaping up to be negative for the peso, with its current level representing a decline of 13.98 cents or 0.76% from last Friday’s official close of 18.3628 pesos. On Wednesday, the peso hit its worst level in 15 months.