Mexican Peso Extends Gains Against the Dollar, Closes at 18.23 per USD
The Dollar Index (DXY)—which measures the greenback against six major currencies—was up 0.19% at 99.07 points.
Quick overview
- The Mexican peso strengthened against the U.S. dollar amid expectations of an interest rate cut by the Federal Reserve next week.
- The exchange rate closed at 18.2389 pesos per dollar, marking a gain of 0.57% from the previous day.
- Despite a volatile trading day, the peso broke below the key support level of 18.24, reaching an 11-week low.
- Analysts suggest that recent labor market data supports the likelihood of further rate cuts, impacting the dollar's recovery prospects.
The local currency strengthened on a volatile trading day, amid growing bets that the Fed will cut interest rates at next week’s meeting.
The Mexican peso advanced against the U.S. dollar in Thursday’s session. The local currency gained ground during a day of price swings, supported by expectations that the U.S. Federal Reserve will lower interest rates at its meeting next week.
The exchange rate closed at 18.2389 pesos per dollar. Compared with yesterday’s close of 18.3435, according to official data from Banco de México (Banxico), the peso posted a gain of 10.46 centavos, or 0.57%.
The dollar traded within a range of 18.3004 at the high and 18.2227 at the low. The Dollar Index (DXY)—which measures the greenback against six major currencies—was up 0.19% at 99.07 points.
The peso broke below the key 18.24 support level, which had held as a floor for the past four weeks. The pair continues to trade within a downward trend that began on November 5, currently sitting at an 11-week low.
Key Drivers for the USDMXN
Earlier in the day, data showed that the number of Americans applying for unemployment benefits fell to the lowest level in more than three years last week, signaling no major deterioration in labor market conditions.
However, the figures did little to change expectations that the Fed will cut rates by 25 basis points for a third consecutive time on Wednesday—a bet that strengthened after yesterday’s private payrolls report, which showed an unexpected decline.
According to analysts, these indicators support the case for two additional cuts early next year, reinforcing the view that “the dollar will not recover—even during the seasonally favorable first quarter of 2026.”
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