Mexican Peso Slides Against U.S. Dollar as Market Awaits U.S. Inflation Data
Meanwhile, the U.S. Dollar Index (DXY), which measures the greenback against a basket of six major currencies, rose 0.6%.
Quick overview
- The exchange rate for the Mexican peso slightly increased against the U.S. dollar, closing at 19.0668 pesos per dollar.
- Trade negotiations between the U.S. and China are being closely monitored by investors, with talks described as 'going well.'
- Mexican equity markets saw moderate gains, with the S&P/BMV IPC index rising 0.49% amid positive performance on Wall Street.
- Key stocks like Cemex and OMA led the gains in the benchmark index, reflecting investor optimism.
The exchange rate edged up slightly on Tuesday as investors kept a close eye on trade negotiations between the United States and China.
The Mexican peso weakened against the U.S. dollar during Tuesday’s trading session. The local currency pulled back after recently reaching its strongest levels since August, as market participants monitored ongoing trade talks between the world’s two largest economies.
The exchange rate closed the day at 19.0668 pesos per dollar, according to official data from the Bank of Mexico (Banxico), compared to 19.0424 pesos on Monday. This marks a depreciation of 2.44 centavos, or 0.13%.
[[USD/XMN-graph]]
During the session, the dollar traded between a high of 19.0992 pesos and a low of 19.0307. Meanwhile, the U.S. Dollar Index (DXY), which measures the greenback against a basket of six major currencies, rose 0.6% to 99.07 points.
U.S. and Chinese officials are currently meeting in London to improve bilateral trade relations. U.S. Commerce Secretary Howard Lutnick commented that talks were “going well” and could conclude later tonight.
The exchange rate has remained relatively stable while markets await potential developments from the meeting. Traders are also anticipating Wednesday’s release of U.S. inflation data, which could shed light on the Federal Reserve’s future monetary policy stance.
A slight acceleration in both headline and core inflation is expected. If confirmed—and paired with a strong economic backdrop—it could support the Fed’s case for keeping interest rates on hold for longer.
Mexican Stock Market Posts Moderate Gains
Mexican equity markets posted modest gains on Tuesday, tracking Wall Street’s positive performance as investors closely followed U.S.–China trade developments.
The benchmark S&P/BMV IPC index of the Mexican Stock Exchange (BMV), which includes the country’s most traded stocks, rose 0.49% to 58,098.51 points. The FTSE BIVA index, from the Institutional Stock Exchange (Biva), advanced 0.47% to 1,171.41 units.
Most stocks within the benchmark index closed higher. Cement giant Cemex led gains with a 2.71% rise to 13.27 pesos, followed by airport operator OMA, which gained 2.52% to 252.88 pesos, and financial group Gentera, up 2.25% to 41.30 pesos.
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