Mexican Peso Cuts Gains Due to Left-Wing Strengthening in the Senate

Morena and its allies are now just one senator short of securing a qualified majority in the Senate after two opposition lawmakers joined their parliamentary group, according to Mexico’s President-elect, Claudia Sheinbaum.

The Mexican peso regained some ground in mid-week trading. The local currency advanced after two days of sharp losses tied to the Judicial Reform but saw its gains reduced in a market closely watching political developments.

The exchange rate closed at 19.6417 pesos per dollar, compared to 19.7131 units yesterday, according to official data from the Bank of Mexico (Banxico). This movement led to a recovery of 7.14 centavos for the currency, equivalent to 0.36 percent.

The dollar traded within a wide range, with a high of 19.7972 pesos and a low of 19.4244 pesos. The U.S. Dollar Index (DXY) from the Intercontinental Exchange, which measures the greenback against six major currencies, gained 0.55% to 101.11 points.

The Mexican peso advanced but pared back its early gains after President-elect Claudia Sheinbaum announced that Morena, her party, had added two opposition lawmakers to its ranks in the Senate.

Earlier in the day, the peso appreciated by more than 1.60 percent. On Monday and Tuesday, the currency suffered significant losses in response to the possibility of the Judicial Reform being passed, amid criticism and concerns from the United States and Canada.

Morena and its allies are now just one senator away from securing a qualified majority in the Senate after the two opposition lawmakers joined their group, Sheinbaum said on Wednesday.

Last week, the National Electoral Institute (INE) confirmed that the party and its allies would hold a qualified majority in the Chamber of Deputies for the upcoming legislative session in September, but they had fallen just short in the Senate.