Mexican Peso Strengthens, Snapping Two-Week Losing Streak
Meanwhile, Mexican equities closed higher on Friday, marking a second consecutive week of gains and setting fresh record highs.
Quick overview
- The Mexican peso strengthened against the U.S. dollar, closing at 18.4483 pesos per dollar, marking a 0.19% appreciation.
- Over the week, the peso gained 1.42%, breaking a two-week losing streak and reaching levels not seen since July 2024.
- Mexican equities also rose, with the S&P/BMV IPC index closing at a record high of 61,798.94 points, reflecting investor optimism ahead of the Federal Reserve meeting.
- Analysts predict the exchange rate will fluctuate between 18.40 and 18.60 per dollar, influenced by the Fed's monetary policy decisions.
The Mexican peso firmed against the U.S. dollar on Friday, reaching a new year-to-date low as investors positioned for next week’s Federal Reserve meeting, where markets widely expect the beginning of an interest rate-cutting cycle.
According to official data from Banco de México (Banxico), the exchange rate closed at 18.4483 pesos per dollar, representing an appreciation of 3.45 centavos, or 0.19%, from the previous session. Over the course of the week, the peso gained 26.60 centavos, or 1.42%, breaking a two-week losing streak and returning to levels not seen since July 2024.
In the near term, analysts expect the exchange rate to fluctuate between 18.40 and 18.60 per dollar, with movement largely contingent on the Fed’s upcoming decision and market speculation surrounding the outlook for U.S. monetary policy.
The dollar index (DXY), which measures the greenback against a basket of six major currencies, rose 0.10% to 97.63 points. Recent U.S. economic data, particularly on inflation and employment, reinforced expectations that the Fed will lower its target range for the federal funds rate next week, though the size of potential cuts later in the year remains a point of debate among investors.
Mexican Equities Extend Rally
Mexican equities closed higher on Friday, marking a second consecutive week of gains and setting fresh record highs, with investor focus fixed on the upcoming Fed decision.
The benchmark S&P/BMV IPC index advanced 0.40% to close at 61,798.94 points, its ninth all-time high so far in 2025. During the session, the IPC touched an intraday peak of 61,941.99 points, moving closer to the 62,000 threshold for the first time.
Meanwhile, the FTSE BIVA index gained 0.43% to 1,235.75 points, after reaching an intraday record of 1,238.17. Both benchmarks posted weekly advances of more than 2%.
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