Mexican Peso Poised for Fifth Consecutive Decline Amid Dollar Strengthening
The Mexican peso is on track for its fifth consecutive decline as the U.S. dollar continues to strengthen.
Markets are gearing up for several monetary policy decisions this week, with particular focus on the U.S. Federal Reserve.
On Monday morning, the Mexican peso is trading lower. The local currency is losing ground at the start of the week due to a globally strengthening dollar, as the market anticipates the Federal Reserve’s monetary policy decision.
The spot exchange rate stands at 18.6350 pesos per dollar. Compared to Friday’s closing rate of 18.4427 pesos, based on the official figures from the Bank of Mexico (Banxico), this movement represents a loss of 19.23 cents or 1.04% for the local currency.
The dollar’s price is fluctuating within an open range, with a high of 18.6787 pesos and a low of 18.4158 pesos. The U.S. Dollar Index (DXY) from the Intercontinental Exchange, which measures the greenback against a basket of six currencies, has decreased by 0.36% to 104.69 points.
The peso has fallen for five consecutive sessions, accumulating a loss of over 3% during this period of depreciation. Factors such as electoral uncertainty in the United States and concerns about local policy continue to pressure the Mexican currency.
Although there is no significant economic information scheduled for today, the market is awaiting announcements from central banks, including the Federal Reserve, which might set the stage for a future adjustment.
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