Mexican Peso Appreciates Against the Dollar, Showing Resilience
The exchange rate closed at 17.1288 pesos per dollar. Compared with Monday’s close of 17.1588, based on official data from Banco de México.
Quick overview
- The Mexican peso gained slightly against the dollar, closing at 17.1288 pesos per dollar after a volatile trading session.
- The dollar fluctuated between 17.2361 and 17.1643 pesos, with the U.S. Dollar Index showing modest strength.
- Market participants are awaiting the release of the Federal Reserve's FOMC minutes for insights on future interest rate adjustments.
- The peso demonstrated resilience around the 17.25 level, approaching its strongest levels of the year.
The peso gained ground in a volatile session as markets awaited the minutes from the U.S. Federal Reserve’s latest monetary policy meeting.
The Mexican peso strengthened slightly against the dollar in the second trading session of the week. The local currency advanced in a choppy session, initially weakening before rebounding and showing resilience, as investors positioned ahead of the release of the minutes from the Federal Reserve (Fed).
The exchange rate closed at 17.1288 pesos per dollar. Compared with Monday’s close of 17.1588, based on official data from Banco de México (Banxico), the move represented a gain of 3 centavos, or 0.18%.
The dollar traded in a range between a high of 17.2361 and a low of 17.1643 pesos. The U.S. Dollar Index (DXY), published by the Intercontinental Exchange, rose 0.06% to 97.15, reflecting modest dollar strength against a basket of six major currencies.
On the data front, the New York Fed manufacturing activity index slipped to 7.1 from 7.7 in January. A Reuters survey of analysts had expected a February reading of 7.0, broadly in line with expectations.
Meanwhile, the ADP weekly employment report in the United States showed private payroll growth above expectations, supporting the dollar and briefly pressuring the exchange rate toward the 17.25 level.
Mexican Peso Price Projections
Market participants are now focused on the release of the FOMC minutes on Wednesday, seeking clues about the future path of interest rates. Austan Goolsbee, president of the Federal Reserve Bank of Chicago, told CNBC that “several” policy adjustments could be approved this year if inflation returns to the 2% target.
With this move, the peso demonstrated notable resilience and strong resistance around the 17.25 level. By closing near 17.10 per dollar, the currency moved back toward its strongest levels of the year, approaching lows not seen since May 2024.
Looking ahead, the market is expected to enter a wait-and-see mode, with the immediate catalyst being the publication of the Federal Reserve’s FOMC minutes, which could reshape expectations for U.S. monetary policy in the coming weeks.
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