Mexican Peso Rises to Strongest Level Since October Amid Dollar Weakness
A decisive break below the 19.25 could push the exchange rate toward 19.15, with the 19.00 mark, representing the next major barrier.
Quick overview
- The Mexican peso appreciated against the U.S. dollar for the third consecutive day, closing at 19.2757 pesos per dollar.
- The U.S. Dollar Index fell 0.35% amid concerns over the U.S. economy and comments from Federal Reserve officials.
- Traders are anticipating key domestic data on inflation and GDP to be released later this week.
- The peso briefly reached an intraday low of 19.2503, a level not seen since mid-October.
The Mexican peso appreciated against the U.S. dollar on Tuesday, marking its third consecutive day of gains as the greenback weakened.
Traders are now looking ahead to key domestic data on inflation and GDP set to be released later this week.
The exchange rate closed the session at 19.2757 pesos per dollar, improving from Monday’s official close of 19.3198, according to data from the Bank of Mexico (Banxico). That represents a gain of 4.41 centavos, or 0.23%, for the peso.
During the day, the dollar traded in a range between a high of 19.3314 and a low of 19.2503 pesos. Meanwhile, the U.S. Dollar Index (DXY)—which tracks the greenback against a basket of six major currencies—fell 0.35% to 100.02.
U.S. Concerns Weigh on Dollar
Tuesday’s market action was influenced in part by public comments from several Federal Reserve officials. Notably, Raphael Bostic, president of the Atlanta Fed, warned that tariffs could potentially impact pricing and employment trends.
Investor sentiment toward the U.S. economy has turned more cautious following Moody’s recent downgrade of the federal government’s credit outlook last Friday. Additional concerns stem from a new tax-cut proposal being debated in Congress, which could increase fiscal uncertainty.
Peso Eyes Key Domestic Data
The peso has benefited from dollar weakness and briefly touched an intraday low of 19.2503, a level not seen since mid-October. Traders are now positioning ahead of Thursday’s release of crucial Mexican economic data, including GDP growth and inflation figures.
The peso is now testing its next support at 19.25. A decisive break below this level could push the exchange rate toward 19.15, with the 19.00 mark, representing the next major psychological barrier.
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