The Mexican peso advances, marking its first positive week since mid-March

The Mexican peso surged to its best level in two weeks, increasing its weekly gain to 1.88%. However, it still shows a 6.77% loss since the elections.

The Mexican peso appreciated significantly against the US dollar this Friday. The currency strengthened due to reduced concerns over local politics after President-elect Claudia Sheinbaum revealed the names of six future cabinet members.

The exchange rate closed at 18.1171 pesos per dollar, compared to 18.3706 pesos per dollar the previous day, according to data from the Bank of Mexico (Banxico). This change represents an appreciation of 25.35 cents, or 1.38%.

During the day, the dollar traded within a range of 18.3720 pesos at its highest and 18.0938 at its lowest. The US Dollar Index (DXY) of the Intercontinental Exchange, which measures the greenback against a basket of six reference currencies, gained 0.20% to 105.80 units at the close.

Sheinbaum announced the initial members of her team yesterday. The profiles, with extensive experience, were well-received by investors, reducing market uncertainty stemming from the elections and ongoing fears over a proposed judicial reform by Morena.

The foreign exchange market seems to be reaching some stability, likely temporary, after significant episodes of risk aversion due to the internal electoral issue.

Today, the peso hit its best level in two weeks, increasing its cumulative weekly gain to 34.62 cents or 1.88%, from 18.4632 pesos last Friday. It is worth noting that compared to the pre-election closing rate of 16.9682, it still shows a 6.77% loss.