Mexican Peso Slightly Retreats Following Local Inflation Data
The peso depreciated slightly during the session, closing at 19.8510 units per dollar, compared to 19.8234 units the previous day.
The Mexican peso ended with little change on Thursday after the release of local inflation figures, which reinforced expectations that the Bank of Mexico (Banxico) will continue lowering its benchmark interest rate.
The peso depreciated slightly during the session, closing at 19.8510 units per dollar, compared to 19.8234 units the previous day, according to official data from Banxico. This represents a loss of 2.76 cents, or 0.14%. The exchange rate fluctuated between a high of 19.8990 and a low of 19.7542 pesos per dollar.
Meanwhile, the U.S. Dollar Index (DXY), which tracks the greenback against a basket of six major currencies, fell 0.39% to 104.02 points. The peso hovered around 19.80 per dollar, with investors awaiting further economic data and closely monitoring U.S. elections, which add uncertainty to medium-term positioning.
Mexico’s overall inflation accelerated to 4.69% in the first half of October. However, the core inflation rate, which excludes more volatile items, moderated to 3.87%—its lowest level since February 2021. This further fueled expectations that Banxico will continue cutting interest rates.
In the U.S., weekly jobless claims unexpectedly dropped to 227,000, while the yield on the 10-year Treasury note fell by 3 basis points to 4.19%.
In recent days, the peso has faced pressure from rising U.S. Treasury yields and speculation about the potential return of Donald Trump to the U.S. presidency—two factors that have kept the currency fluctuating as it awaits clearer market signals.
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