Mexican Peso Falls as Dollar Strengthens, Closes at 18.78
The U.S. Dollar Index (DXY), which measures the greenback against six major currencies, climbed 0.30% to 98.14, reaching a two-week high.
Quick overview
- The peso weakened against the dollar, closing at 18.7807 per dollar, a 0.21% loss from the previous session.
- The U.S. Dollar Index rose 0.30% to 98.14, reaching a two-week high amid geopolitical developments.
- Market focus is shifting to the upcoming Jackson Hole symposium, where Fed Chair Jerome Powell will speak on interest rates.
- Traders are also awaiting local economic data, including the final Q2 GDP reading and June's IGAE index.
The peso weakened slightly against the dollar on Monday, pressured by a broad advance in the greenback at the start of a week set to be dominated by the Federal Reserve’s annual Jackson Hole symposium.
The exchange rate ended the session at 18.7807 per dollar, compared with Friday’s close of 18.7412, according to data from the Bank of Mexico (Banxico). That represented a 0.21% loss, or 3.95 centavos. During the day, the peso traded between a high of 18.8676 and a low of 18.7167.
The U.S. Dollar Index (DXY), which measures the greenback against six major currencies, climbed 0.30% to 98.14, reaching a two-week high as markets also tracked geopolitics. Investors were watching a meeting in Washington between U.S. President Donald Trump and Ukrainian President Volodymyr Zelensky, following Trump’s recent talks with Russian leader Vladimir Putin.
Looking Ahead: Jackson Hole and Local Data
Market attention is now shifting toward the Jackson Hole symposium later this week, where Fed Chair Jerome Powell is expected to deliver remarks on Friday that could provide guidance on the path of U.S. interest rates.
Locally, traders are awaiting the final Q2 GDP reading and June’s IGAE economic activity index for further insight into sector performance.
From a technical standpoint, the peso began the week trading around its 50-day moving average (18.78), with resistance levels at 18.90 and 19.00, and support at 18.66 and 18.60 per dollar.
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