Mexican Peso Strengthens 1.08% Following Bessent’s Nomination as U.S. Treasury Secretary
The Mexican peso strengthened against the U.S. dollar on Monday, recovering ground after three consecutive losses.
This rebound was supported by a significant decline in the greenback, spurred by the nomination of Scott Bessent as U.S. Treasury Secretary under President-elect Donald Trump.
The exchange rate closed at 20.2833 pesos per dollar, improving from Friday’s level of 20.4919 pesos, according to data from the Bank of Mexico (Banxico). This represents an appreciation of 20.86 cents or 1.08%. During the session, the dollar traded within a range of 20.4454 at its highest and 20.2306 at its lowest.
The U.S. Dollar Index (DXY), which measures the dollar against six major currencies, fell 0.60% to 106.91 points, reflecting weakened demand for the currency.
Yields and Current Events in U.S. Politics
The peso’s recovery was further supported by a drop in U.S. Treasury yields following Bessent’s nomination. Markets view Bessent, a hedge fund manager, as a potential stabilizer for U.S. fiscal policy, which could mitigate the negative impacts of Trump’s proposals, such as higher tariffs and expansive spending plans.
This week, traders are closely watching key economic events, including the release of monetary policy minutes from the Federal Reserve on Tuesday and Banxico on Thursday. These reports could offer insights into potential rate cuts as inflation continues to ease.
The peso also benefited from expectations of a more balanced approach to U.S. economic policy, with Bessent’s appointment signaling a shift toward fiscal moderation. As a result, the dollar’s weakness gave the peso room to regain some of last week’s losses.
Don’t forget to check out our live currency rates, where you can track the Mexican peso and other global currencies in real-time!
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