Mexican Peso Weakens Against the Dollar
The Mexican peso ended Friday’s session weaker against the U.S. dollar, erasing early-session gains after the release of local unemployment data.
Market participants also remain focused on the upcoming start of Donald Trump’s administration.
The peso depreciated by 0.26% during the session, closing at 20.6724 pesos per dollar, based on data from Banco de México (Banxico). The exchange rate ranged from a low of 20.6220 to a high of 20.7070 pesos per dollar.
On a weekly basis, the peso posted a 1.74% decline against the dollar, marking its second consecutive weekly loss.
Despite this, the USD/MXN had its best start to the year since 2010 on Thursday, January 2, appreciating 1.27% to 20.6185 pesos per dollar. This strong performance came after the peso ended 2024 at its weakest level since the summer of 2022.
Mexican Peso Outlook
The U.S. Dollar Index (DXY), which measures the greenback against a basket of six major currencies, fell 0.29% to 108.93 points.
Investors remain cautious about the upcoming inauguration of Donald Trump on January 20 and the potential impact of his policies on the Mexican economy.
Local unemployment data pressured the peso further. The unemployment rate in November rose slightly to 2.6%, up from 2.5% in October, though it remained below market expectations of 2.7%. This reinforces expectations of a continued cycle of rate cuts by Banxico in 2025, contrasting with the Federal Reserve’s restrictive stance.
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