Positive Performance of the Mexican Peso Against the Dollar
The Mexican peso began the week with a positive performance against the dollar, gaining ground and approaching the 19-unit barrier. The market remained vigilant regarding ongoing trade talks between the United States and China.
The exchange rate closed the day at 19.0424 pesos per dollar, marking a gain of 6.3 centavos or 0.33% compared to Friday’s record of 19.1054 pesos, according to official data from the Bank of Mexico (Banxico). The dollar fluctuated between a high of 19.1082 pesos and a low of 19.0272 pesos, while the Dollar Index (DXY) from the Intercontinental Exchange fell 0.17% to 99.02 points.
Optimism Surrounding US-China Trade Negotiations
High-ranking officials from Washington and Beijing convened in London, United Kingdom, to negotiate recent trade disputes. These discussions build upon the preliminary agreement that eased tensions in May.
“There is a greater appetite for risk following the resumption of negotiation tables between the United States and China, focusing on rare earth minerals and technology amid mutual accusations of violating agreements,” explained Juan Carlos Cruz, a financial consultant.
Inflation to Take Center Stage This Week
On the domestic front, the peso continued to rise after learning that Mexico’s inflation in May exceeded expectations and surpassed the central bank’s target range of 3% ± 1 percentage point, recording 4.42%. This marked the largest increase since November.
The support level at 19 units will be crucial to watch this week. According to Cruz Tapia, the price could easily surpass this level, aiming for the 18.80 area. Furthermore, this week’s market anticipates the release of US consumer and producer price data.
Key Questions and Answers
- What is the current performance of the Mexican peso against the dollar? The Mexican peso has shown a positive performance this week, gaining ground and approaching the 19-unit barrier against the dollar.
- What are the ongoing trade talks between the US and China about? The negotiations focus on rare earth minerals and technology, following mutual accusations of violating agreements.
- What is the recent inflation rate in Mexico? Mexico’s inflation rate in May was 4.42%, surpassing expectations and the central bank’s target range of 3% ± 1 percentage point.
- What factors will influence the Mexican peso this week? The market will monitor the support level at 19 units and await the release of US consumer and producer price data.
