Mexican Peso Weakens Against the Dollar for the Second Straight Session
According to data from the Bank of Mexico (Banxico), the exchange rate closed at 18.3592 pesos per dollar, a 0.11% depreciation.
Quick overview
- The U.S. Dollar Index (DXY) increased by 0.32%, reaching 99.87 points, indicating renewed strength of the dollar.
- The Mexican peso weakened for the second consecutive session, closing at 18.3592 pesos per dollar, a 0.11% depreciation.
- Analysts suggest the market is in 'pause mode' ahead of key U.S. employment data, which could influence the peso's exchange rate.
- Mexican equities rose 0.49% after four sessions of losses, driven by gains in major companies like Industrias Peñoles and Cemex.
The U.S. Dollar Index (DXY), which measures the greenback’s strength against a basket of major currencies, is up 0.32%, reaching 99.87 points.
The Mexican peso weakened against the dollar on Wednesday, marking its second consecutive session of losses, pressured by a stronger greenback and ahead of key U.S. employment data.
According to data from the Bank of Mexico (Banxico), the exchange rate closed at 18.3592 pesos per dollar, a 0.11% depreciation, or 2.02 centavos, compared with Tuesday’s close.
Meanwhile, the DXY rose 0.32% to 99.87, reflecting renewed dollar strength.
Analysts noted that the exchange rate’s behavior does not imply an absence of tension; rather, it signals a market in “pause mode,” waiting for upcoming catalysts. These include the release—finally resuming after the prolonged U.S. government shutdown—of key macroeconomic data such as employment and inflation, as well as updated speculative positioning data, where the last CFTC report showed extremely heavy long bets on the peso.
If speculative positions show excessive leveraged longs on the peso, a correction toward levels above 18.40 could emerge.
On the other hand, U.S. data and the tone of the Federal Reserve will be crucial. Any disappointment in labor-market figures or signs pointing toward a rate cut would strengthen the peso; the opposite could trigger a rebound in the dollar.
For the overnight session, analysts expect the exchange rate to trade between 18.31 and 18.42 pesos per dollar, considering the stronger dollar and upcoming U.S. employment data.
Mexican Stock Market
Mexican equities rose on Wednesday after four straight sessions of losses, supported by gains in Industrias Peñoles and Cementos de México (Cemex).
The benchmark S&P/BMV IPC of the Mexican Stock Exchange (BMV), which tracks the most traded local stocks, climbed 0.49% to 62,258.41 points.
The FTSE BIVA of the Institutional Stock Exchange (Biva) advanced 0.37% to 1,239.98 points.
- 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