Peso Appreciates Against the Dollar for Third Consecutive Session
The Mexican peso is gaining against the dollar this morning, with the local currency advancing for a third consecutive session due to the general weakening of the greenback. The session is marked by comments from officials at the Federal Reserve.
The spot exchange rate is currently at 19.2880 pesos per dollar, up by 3.18 centavos or 0.17%, compared to yesterday’s official closing rate of 19.3198 pesos per dollar, as reported by Banco de México (Banxico).
The dollar’s price is fluctuating between a high of 19.3314 pesos and a low of 19.2568 pesos. The DXY, or Intercontinental Exchange’s Dollar Index, which compares the US dollar to six reference currencies, is down by 0.12% at 100.25 points.
Extends Positive Trend
The peso’s advance continues, while the dollar loses ground in the market. Earlier today, the parity touched a minimum of 19.2568 pesos, unseen since mid-October. Over the past three sessions, the peso has recovered more than 1%.
“We anticipate the uptrend to persist. Breaking through resistance at 19.24 will establish a more favorable signal. In that regard, the next technical level to watch is 19.15, with support located at 19.38,” said Banorte.
Market Focus on Fed Officials’ Comments
Throughout the day, several Federal Reserve officials, including Raphael Bostic from Atlanta and Thomas Barkin from Richmond, are expected to speak at different gatherings. Markets will closely monitor comments on interest rates, the economy, and inflation.
Locally, participants’ attention remains on the GDP and inflation figures for the first two weeks of the month, a week after Banxico reduced its key rate by 50 basis points and warned of potential further adjustments.
Key Questions and Answers
- What is driving the peso’s appreciation against the dollar? The peso is gaining due to a general weakening of the US dollar, as well as comments from Federal Reserve officials.
- Which Fed officials are speaking today, and what topics will they address? Raphael Bostic from Atlanta and Thomas Barkin from Richmond will speak at different gatherings, with markets focusing on their comments about interest rates, the economy, and inflation.
- What local economic indicators are currently under observation? Participants are closely watching the GDP and inflation figures for the first two weeks of the month, following Banxico’s recent rate cut and warning of possible further adjustments.
