Overview of the Mexican Peso’s Performance
The Mexican peso concluded the day virtually unchanged against the US dollar, maintaining stability in a session marked by employment figures that reinforced expectations of stable interest rates in the United States.
The exchange rate ended the day at 17.9836 pesos per dollar, with a marginal improvement of 0.01% less than a cent compared to the previous day’s closing rate of 17.9846 pesos, according to official data from Mexico’s central bank, Banxico. The dollar’s price fluctuated between a high of 18.0412 pesos and a low of 17.9506 pesos, while the Intercontinental Exchange’s Dollar Index (DXY) increased by 0.26% to 99.13 units.
US Employment Figures
The growth in US employment slowed more than anticipated in December, amid cautious business sentiment. Nonfarm payrolls added 50,000 new jobs last month, and the unemployment rate fell to 4.4%.
Nonfarm payrolls are a crucial report for the Federal Reserve’s monetary policy. According to the FedWatch tool by CME Group, which tracks futures on interest rates, the rate is expected to remain unchanged at the upcoming meeting.
“The data was interpreted as consistent with a prudent monetary policy,” said Diego Albuja, an analyst at ATFX Latam. “Expectations for rate cuts have diminished, and the view that any adjustment would occur later in the year has been reinforced.”
Trump’s Threat
Earlier in the day, the Mexican peso weakened to 18.0440 pesos, an unseen level since mid-December, partly due to uncertainty over the United States’ future actions following its moves in Venezuela.
In an interview with Fox News, US President Donald Trump stated that his administration would begin ground attacks against drug cartels. These words were interpreted as a warning to the Mexican government.
When questioned about Trump’s remarks, Mexico’s President Claudia Sheinbaum said in her press conference that she had tasked her foreign minister, Juan Ramón de la Fuente, with improving communication between the two nations.
First Weekly Decline
Despite the stability shown during the session, the peso’s overall performance for the week was negative, marking its first complete week of 2026. Compared to a closing rate of 17.9142 pesos the previous Friday, the movement represented a loss of 6.94 centavos or 0.39%, according to official data from Banxico.
Key Questions and Answers
- What was the performance of the Mexican peso against the US dollar? The Mexican peso ended the day virtually unchanged against the US dollar, maintaining stability.
- What were the employment figures in the United States? The growth in US employment slowed more than expected in December, with nonfarm payrolls adding 50,000 new jobs and the unemployment rate falling to 4.4%.
- How did the US employment data impact the Mexican peso? The data was interpreted as consistent with a prudent monetary policy, diminishing expectations for rate cuts and reinforcing the view that any adjustment would occur later in the year.
- What was the impact of Trump’s statements on the Mexican peso? The Mexican peso weakened to an unseen level since mid-December, partly due to uncertainty over the United States’ future actions following its moves in Venezuela. Trump’s words were interpreted as a warning to the Mexican government.
- What was the weekly performance of the Mexican peso? Despite daily stability, the Mexican peso’s overall performance for the week was negative, marking its first complete week of 2026 with a loss of 0.39%.
