Mexican Peso Falls 1.36% in First Session of the Week; Awaits U.S. Inflation Data

The local currency retreated after having recorded its third consecutive day of gains on Friday, in a cautious market awaiting key economic data.

The Mexican peso depreciated against the U.S. dollar on Monday. The local currency retreated after having recorded its third consecutive day of gains on Friday, in a market cautious ahead of key U.S. inflation data.

The exchange rate closed the session at 19.0844 pesos per dollar. Compared to a level of 18.8289 pesos yesterday, based on data from the Bank of Mexico (Banxico), this movement represented a loss of 25.55 cents, equivalent to 1.36 percent.

The dollar’s price fluctuated within a wide range, reaching a high of 19.1060 pesos and a low of 18.7901. The U.S. Dollar Index (DXY) from the Intercontinental Exchange, which compares the greenback against six reference currencies, rose 0.03% to a level of 103.17 points.

After a volatile week marked by a “Black Monday,” during which the peso regained ground, investors are preparing for key U.S. inflation reports on producer (PPI) and consumer (CPI) prices, searching for clues about future interest rate movements.

The market is hoping the data will shed light on the future of the Federal Reserve’s (Fed) monetary policy, amid concerns that a rate cut in September could come too late to prevent an economic recession.

In addition to the price reports to be released on Tuesday and Wednesday, investors will also be closely watching a series of data on retail sales, industrial production, and housing starts throughout the week.

On the local front, Monday’s session was marked by data showing a deterioration in consumer confidence last month. The consumer confidence index stood at 46.9 in July, down from 47.5 the previous month.