Mexican Peso Closes Flat Against Dollar but Records Weekly Decline
The peso continues to trade in a tight 18.6–18.7 range, with investors awaiting upcoming U.S. jobs data and the Fed’s September 17 meeting.
Quick overview
- The Mexican peso closed at 18.6615 per dollar, showing a slight decline of 0.10% as traders reacted to U.S. inflation data and Banxico's quarterly report.
- The U.S. Dollar Index slipped 0.09% to 97.77, while the peso traded within a narrow range of 18.60 to 18.70.
- Banxico raised its growth forecast for Mexico's economy to 0.6% for this year and adjusted inflation projections for 2025 to 3.7%.
- The peso experienced a weekly loss of 0.37% against the dollar, closing lower than the previous week.
The Mexican peso closed virtually unchanged against the dollar on Friday, edging lower as traders digested U.S. inflation data and the Bank of Mexico’s quarterly report.
The exchange rate settled at 18.6615 pesos per dollar, compared with 18.6439 in the previous session, according to official data from Banxico. The move represented a marginal loss of 1.76 centavos, or 0.10%.
During the day, the dollar traded in a range between a high of 18.7169 and a low of 18.6343 pesos. The U.S. Dollar Index (DXY), which measures the greenback against a basket of six major currencies, slipped 0.09% to 97.77.
U.S. Inflation Data
The latest report showed the Personal Consumption Expenditures (PCE) price index—the Federal Reserve’s preferred inflation gauge—rose 0.2% month-on-month in July and 2.6% year-on-year, in line with forecasts.
Following the data, markets are pricing in an 87% probability that the Fed will cut rates in September, according to CME Group’s FedWatch tool. However, expectations for the October meeting remain split.
The peso continues to trade in a tight 18.60–18.70 range, with investors awaiting upcoming U.S. jobs data and the Fed’s September 17 meeting.
Banxico’s Quarterly Report
Locally, investors assessed Banxico’s quarterly report, in which the central bank raised its growth and inflation forecasts while maintaining its view that inflation will return to target by the third quarter of 2026.
Banxico now expects Mexico’s economy to grow 0.6% this year, up from a prior estimate of 0.1%. For 2025, it projects both headline and core inflation at 3.7%, compared with previous forecasts of 3.3% and 3.4%, respectively.
On a weekly basis, the peso posted a moderate loss against the dollar. From last Friday’s close of 18.5935, the local currency recorded a decline of 6.80 centavos, or 0.37%.
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