Mexican Peso Surges 1.86% in September, Closes Month Strong
Meanwhile, the Mexican peso consolidated its position as the third most traded emerging-market currency worldwide.
Quick overview
- The Mexican peso appreciated slightly against the dollar, closing September with a monthly gain of 1.86%.
- The exchange rate ended at 18.3147 pesos per dollar, reflecting a cautious market amid potential US government shutdown risks.
- The peso is now the third most traded emerging-market currency globally, with an average daily trading volume of about $153 billion.
- Traders are closely monitoring upcoming labor market data, which could influence US monetary policy decisions.
The Mexican peso appreciated slightly against the dollar in the final session of September, closing the month with solid gains as traders remained cautious amid the risk of a partial shutdown of the US government.
The exchange rate ended Tuesday at 18.3147 pesos per dollar, up 5.19 cents, or 0.28%, from Monday’s close of 18.3666, according to official data from the Bank of Mexico (Banxico). Compared to the official August close of 18.6615, the peso gained 34.68 cents, representing a monthly improvement of 1.86%.
During the session, the dollar traded in a range between 18.3809 and 18.3093 pesos. The ICE Dollar Index (DXY), which tracks the US dollar against a basket of six major currencies, declined 0.12% to 97.83 points.
US Government Shutdown in Focus
Attention in the markets remains fixed on the possibility of a partial US government shutdown. The deadline for Congress to approve a federal budget is tonight at midnight. If Republicans and Democrats fail to reach an agreement, nonessential government operations and services would be temporarily suspended.
Among the affected activities would be the release of key economic indicators. This week, traders are particularly watching labor market data, including the monthly nonfarm payroll report from the Bureau of Labor Statistics, which is closely monitored for US monetary policy decisions.
Earlier in the day, Boston Fed President Susan Collins stated that she is open to supporting further interest rate cuts, anticipating that inflationary pressures may ease at some point next year.
Peso Among the Most Traded Emerging-Market Currencies
Meanwhile, the Mexican peso consolidated its position as the third most traded emerging-market currency worldwide, behind only China’s renminbi and India’s rupee, according to a triannual survey conducted by the Bank for International Settlements (BIS).
The survey, considered the most comprehensive measure of the global foreign exchange market, also showed that the peso ranks 14th among the world’s most traded currencies, with an average daily trading volume of approximately $153 billion.
This strong showing highlights the peso’s resilience, even amid global uncertainties and domestic economic developments.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save