Background on the Mexican Peso and its Recent Performance
The Mexican peso experienced a slight depreciation against the US dollar on Monday morning, following five consecutive days of gains that pushed it to its highest level in ten months. The market remains vigilant regarding news from the United States.
Current Exchange Rate and Movement
The spot exchange rate is currently at 18.8629 pesos per dollar, a slight decrease from Friday’s closing rate of 18.8529 pesos per dollar, according to official data from Banco de México (Banxico). This movement results in a loss of one centavo or 0.05% for the peso.
The dollar’s price fluctuates between a high of 18.8994 pesos and a low of 18.8002 pesos. The Intercontinental Exchange’s Dollar Index (DXY) fell 0.36% to 97.05 units.
Reasons for the Peso’s Recent Depreciation
Monex Grupo Financiero explained the peso’s recent decline against the dollar, citing the potential approval of US President Donald Trump’s fiscal project. This proposal includes a tax increase on remittances.
Factors Favoring the Peso Last Week
Last week, the Mexican peso benefited from the end of hostilities between Israel and Iran, as well as news of progress in US-China trade negotiations. The currency accumulated a positive performance of over 31 centavos or 1.65%.
Grupo Financiero Banorte suggested that the upward trend would likely continue, as the peso respected the support level of 18.80 per dollar. They identified 18.96 pesos as the potential resistance level, recommending maintaining positions.
Key Questions and Answers
- What is the current status of the Mexican peso against the US dollar? The Mexican peso has slightly depreciated against the US dollar, losing one centavo or 0.05%, after five consecutive days of gains that took it to its best level in ten months.
- What factors influenced the peso’s recent performance? The peso was supported last week by the resolution of tensions between Israel and Iran, as well as progress in US-China trade negotiations. However, the recent depreciation is partly attributed to the potential approval of US President Donald Trump’s fiscal project, which includes a tax increase on remittances.
- What are analysts’ expectations for the Mexican peso’s future performance? Grupo Financiero Banorte anticipates that the upward trend in the peso will persist, with the currency respecting the 18.80 per dollar support level and facing potential resistance at 18.96 pesos.
