Mexican Peso Gains After Hitting Six-Week Low
The dollar’s high for the day marked a six-week peak, which analysts attribute to rising U.S. Treasury yields.
The Mexican peso regained ground against the U.S. dollar on Wednesday after a day of pressure that saw the currency hit its lowest level in six weeks.
The recovery came as investors positioned themselves ahead of tomorrow’s release of a key local inflation report.
The exchange rate closed at 19.8234 pesos per dollar, compared to 19.9478 in the previous session, according to official data from the Bank of Mexico (Banxico). This gain of 12.44 cents, or 0.62%, signals a positive turnaround for the peso.
During the day, the dollar fluctuated within a range, reaching a high of 20.0995 and a low of 19.8160 pesos. Meanwhile, the U.S. Dollar Index (DXY), which tracks the greenback against a basket of six major currencies, rose 0.33% to 104.42 points.
The dollar’s high for the day marked a six-week peak, which analysts attribute to rising U.S. Treasury yields as uncertainty lingers over future interest rate cuts by the Federal Reserve.
The peso has also been affected recently by concerns over the potential return of Donald Trump as U.S. president, a development that could complicate trade relations with Mexico’s largest trading partner and impact the economy.
Earlier in the day, data from the National Institute of Statistics and Geography (Inegi) showed that retail sales in August grew just 0.1% from the previous month. On an annual basis, sales fell 0.8%, a sharper decline than expected.
Despite the peso’s rebound, analysts caution that the 20-peso-per-dollar level remains a strong resistance point that could limit further gains. Indicators suggest continued upward pressure, but only a close below 19.70 would significantly ease the currency’s recent struggles.
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