The Mexican peso falls after posting gains for four consecutive sessions.
Traders remain cautious ahead of potential monetary policy insights from the upcoming Jackson Hole central bankers’ meeting.
The Mexican peso depreciated slightly against the dollar in Monday’s session, following four consecutive days of gains. The local currency lost ground as the Japanese yen strengthened and local concerns resurfaced.
The exchange rate closed the day at 18.6985 pesos per dollar. Compared to Friday’s level of 18.6294, according to official data from the Bank of Mexico (Banxico), this movement represented a decline of 6.91 cents, or 0.37 percent.
The dollar’s price fluctuated within a wide range, reaching a high of 18.8398 pesos and a low of 18.6119 pesos. The U.S. Dollar Index (DXY) from the Intercontinental Exchange, which measures the dollar against six major currencies, fell 0.57% to 101.88 points.
The Japanese yen resumed its upward trend amid doubts about how long the pause in Japan’s interest rate hikes would last, refocusing attention on carry trade operations. Locally, the primary concern was judicial reform.
Analysts also attributed the peso’s losses to traders’ caution ahead of this week’s Jackson Hole symposium, where Federal Reserve Chair Jerome Powell might provide guidance on future monetary policy steps.
The peso’s strength is evident as it only slightly declined, reflecting market reactions to Japan’s growth, the yen’s strength, and upcoming signals on U.S. monetary policy by Friday.
On Friday afternoon, after markets closed, Morena’s lower house coordinator, Ignacio Mier, announced that the judicial reform proposal includes electing Supreme Court justices by popular vote in June 2025.
This week, market participants will be closely monitoring the release of the Federal Reserve and Banxico meeting minutes, as well as reports on mid-month inflation and Mexico’s Gross Domestic Product (GDP).
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