Mexican Peso Drops on First Trading Day of July
The exchange rate ended the session at 18.3640 pesos per dollar. Compared to Friday's close of 18.2862.
Some analysts stated that the peso’s drop this Monday was related to a weak report from the U.S. manufacturing sector.
The Mexican peso depreciated at the start of the week. Following its worst semester since the pandemic due to concerns over local politics after Morena’s victory in the June 2 election, the currency extended its losses.
The exchange rate ended the session at 18.3640 pesos per dollar. Compared to Friday’s close of 18.2862, based on official data from the Bank of Mexico (Banxico), this movement represented a loss of 7.78 cents or 0.43 percent for the peso.
The dollar price fluctuated within a range between a high of 18.4520 pesos and a low of 18.2650 pesos. The Dollar Index (DXY) from the Intercontinental Exchange, which measures the greenback against a basket of six currencies, slipped 0.06% to 105.81 points.
Some analysts claimed that Monday’s peso decline was connected to a weak report from the U.S. manufacturing sector. Although this report fueled bets in favor of a Federal Reserve rate cut, it also sparked concern.
Worries about the U.S. economy appear to be growing after the release of the ISM Manufacturing Purchasing Managers’ Index, which contracted more than expected. Additionally, the U.S. Manufacturing PMI marked 51.6 points, indicating a moderate decline from the previous month.
Traders remain attentive to monetary policy information. On Wednesday, during a week shortened by the U.S. Independence Day, the Fed will release the minutes of its most recent meeting.
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