Mexican Peso Rises Against the Dollar After Fed Minutes Release
With no major U.S. data due to the shutdown, market moves were driven by technical flows, positioning, and reactions to the Fed minutes.
Quick overview
- The Mexican peso appreciated against the dollar, closing at 18.3242 pesos per dollar, following the release of the Federal Reserve meeting minutes.
- The exchange rate improved by 0.38%, with the dollar trading between a high of 18.4365 and a low of 18.3201 pesos during the session.
- The FOMC minutes indicated increased risks in the labor market, supporting expectations for further interest rate cuts in the U.S.
- Attention will shift to Mexico's consumer inflation figures and Banxico's policy meeting minutes, as no major U.S. data is available due to the government shutdown.
The Mexican peso appreciated against the dollar on Wednesday, buoyed by the release of the latest Federal Reserve meeting minutes, which reinforced expectations for further interest rate cuts in the United States.
The exchange rate closed at 18.3242 pesos per dollar, improving from 18.3945 in the previous session, according to Banco de México (Banxico) data. That represents a gain of 7.03 centavos, or 0.38%.
During the session, the dollar traded between a high of 18.4365 and a low of 18.3201 pesos. Meanwhile, the U.S. Dollar Index (DXY)—which measures the greenback against a basket of six major currencies—rose 0.25% to 98.85 points.
The Federal Open Market Committee (FOMC) minutes showed that officials saw increased risks in the labor market, justifying a rate adjustment, though inflation concerns remained present.
The discussions came as the U.S. government shutdown entered its eighth day, delaying the release of key economic indicators. Despite this, investors continue to bet on additional rate cuts later this year.
Traders are still watching for a deal to reopen the U.S. government. The peso is pivoting around 18.38, with short-term momentum remaining sideways between 18.44 and 18.33.
With no major U.S. data due to the shutdown, market moves were driven by technical flows, positioning, and reactions to the Fed minutes.
On Thursday, local attention will shift to Mexico’s own data. The National Institute of Statistics and Geography (Inegi) will release September consumer inflation figures, followed later in the day by Banxico’s minutes from its latest policy meeting, offering further insight into the central bank’s outlook.
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