Background on the Mexican Peso and its Current Situation
The Mexican peso has experienced a slight depreciation against the US dollar on this Tuesday morning. The local currency is losing ground due to the strengthening of the greenback, as the market continues to assess risks associated with the prolonged US federal government shutdown.
Current Exchange Rate and Trends
The spot exchange rate is currently at 18.3776 pesos per US dollar, marking a decrease of 3.02 centavos (equivalent to 0.17%) compared to the previous day’s close of 18.3474 pesos, according to official data from Banco de México (Banxico).
The US dollar’s price is fluctuating within a range of 18.4158 pesos (maximum) to 18.3323 pesos (minimum). The Intercontinental Exchange’s Dollar Index (DXY) has increased by 0.42% to 98.53 points, comparing the US currency with six major currencies.
Impact of the US Government Shutdown
The partial closure of US government activities has postponed the release of crucial economic information, such as the non-agricultural payroll report scheduled for Friday. This delay also affects other data anticipated to guide the Federal Reserve’s decisions.
Expert Analysis and Predictions
Monex highlighted, “Today, the Mexican peso is affected by the strengthening of the US dollar amidst uncertainty surrounding the prolonged US government shutdown, following the rejection of a spending proposal for the fifth time in the Senate on Monday.”
Felipe Mendoza, an analyst at broker AFTX LATAM, stated, “We expect the exchange rate to remain within a narrow range of 18.28 to 18.42 today, with a slight appreciation bias, as long as there are no restrictive signals from the Federal Reserve’s comments.”
Key Questions and Answers
- What is causing the Mexican peso to weaken? The primary reason for the peso’s depreciation is the strengthening of the US dollar, fueled by uncertainty surrounding the prolonged US government shutdown.
- How is the US government shutdown affecting economic data release? The partial closure of US government activities has delayed the publication of crucial economic information, including the non-agricultural payroll report and other data vital for guiding Federal Reserve decisions.
- What are analysts predicting for the Mexican peso’s performance today? Analysts, like Felipe Mendoza from AFTX LATAM, anticipate the exchange rate to stay within a limited range of 18.28 to 18.42 pesos per US dollar, with a slight appreciation bias unless restrictive signals emerge from Federal Reserve comments.
