The Mexican Peso extends its advance, dropping below 18 per dollar.

The local currency strengthens as bets on Fed rate cuts persist, with investors awaiting the release of significant information this week.

The Mexican Peso appreciates against the dollar at the beginning of this week. The local currency gains ground, dropping below the 18-unit mark, continuing its advance from the previous week, as bets on Fed rate cuts persist.

The spot exchange rate stands at 17.9864 pesos per dollar. Compared to yesterday’s closing rate of 18.0838, based on the official data from Banco de México (Banxico), this movement signifies a gain of 9.74 centavos, equivalent to 0.54 percent.

The dollar’s price is moving within an open range, with a maximum of 18.1040 units and a minimum of 17.9855. The Dollar Index (DXY) from the Intercontinental Exchange, which measures the greenback against a basket of six currencies, is down 0.05% to 104.82 points.

No significant economic information will be released today, but market participants are awaiting Federal Reserve (Fed) Chairman Jerome Powell’s testimony before the Senate, Mexico’s inflation data tomorrow, and the U.S. inflation data on Thursday.

Investors are also anticipating the release of the minutes from Banxico’s most recent monetary policy meeting, where the governing board kept the key interest rate unchanged at 11%, seeking signals about its August decision.

Today, the peso maintains the strength recorded at the end of last week, due to a weakening dollar and the prospect that Banxico’s interest rate differential with the Fed will persist, enhancing the peso’s appeal.

ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.

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