The Mexican Peso Recovers Ground Following U.S. Data and Comments from Banxico

Central bank officials stated that authorities were closely monitoring recent local exchange rate volatility and could take action if necessary.

The Mexican Peso regained ground against the dollar this Thursday. The local currency advanced strongly in a session marked by inflation figures and unemployment claims in the United States, along with a strong reaction to local information.

The exchange rate ended the session at 18.4732 pesos per dollar. With an official close of 18.7597 pesos yesterday, according to data from the Bank of Mexico (Banxico), this movement signifies an improvement of 28.65 cents, equivalent to 1.53 percent.

The dollar traded within a wide range, reaching a maximum of 18.8417 pesos and a minimum of 18.4194 pesos. The Dollar Index (DXY) from the Intercontinental Exchange, which measures the greenback against six major currencies, advanced 0.53% to 105.20 units.

The peso had entered a negative trend following the release of preliminary election results. This led it to a 15-month low of nearly 19 pesos yesterday, with a loss of 2.02 pesos or 11.96% from a close of 16.9682.

Some analysts mentioned that the peso found support in comments from Banxico officials, who stated that authorities were closely monitoring recent local exchange rate volatility and could take action if necessary.

Additionally, there was a positive reaction to U.S. economic figures, where the producer price index for May fell unexpectedly and new unemployment benefit claims reached a high since August.

The Federal Reserve kept its rate unchanged yesterday but highlighted progress in fighting inflation. Moreover, its chairman, Jerome Powell, responded optimistically to the consumer price data reported yesterday, which showed surprising stability.