Mexican peso gains ground; ends the week on a positive note.

Thanks to reduced market anxiety over the U.S. economy and a local rate cut, the Mexican peso achieved a weekly gain.

The Mexican peso appreciated against the U.S. dollar for the third consecutive day. The reduced nervousness in the markets about the U.S. economy, coupled with a local interest rate cut, helped the currency secure a weekly gain.

The exchange rate closed the day at 18.8289 pesos per dollar. Compared to yesterday’s level of 18.9681, according to data from the Bank of Mexico (Banxico), this movement represented a gain of 13.92 centavos, or 0.73 percent.

The dollar traded within a broad range, reaching a high of 18.9220 pesos and a low of 18.7745. The U.S. Dollar Index (DXY) from the Intercontinental Exchange, which measures the greenback against six major currencies, was down 0.07% at 103.14 points.

Compared to its official level last Friday of 19.1624 pesos per dollar, the peso advanced by 33.35 centavos, or 1.74 percent. This improvement followed a sharp move on Monday that briefly pushed the exchange rate above 20 pesos per dollar.

The Bank of Japan dispelled speculation about a wave of rate cuts, which had been pressuring the exchange rate as carry trade positions were unwound. Positive labor data from the U.S. also eased recession fears.

Looking ahead to next week, traders will be closely watching U.S. inflation and labor data for clues about the health of the world’s largest economy and the Federal Reserve’s next steps regarding interest rates.