Daily Fluctuations and Recent Developments
The Mexican peso depreciated against the US dollar on Friday, affected by increased market risk perception and news from the United States. The currency closed the week with losses, but managed to maintain a robust improvement over the month.
The exchange rate ended this session at 19.3957 pesos per dollar, compared to the official close of 19.3116 pesos reported by Banco de México (Banxico) the previous day. This represented an 8.41-centavo or 0.44% decrease for the peso.
The dollar’s price fluctuated between a high of 19.3355 pesos and a low of 19.2579 pesos. The Intercontinental Exchange’s Dollar Index (DXY), which compares the US currency to six other currencies, traded steadily at 99.34 points.
New Concerns
US President Donald Trump accused China of violating a trade agreement between the two countries by lowering tariffs. This came at a time when negotiations between the two nations seemed stalled.
Additionally, a court of appeals reinstated Trump’s tariffs late Thursday after a trade court declared on Wednesday that the US president had overstepped and ordered him to halt nearly all of them.
Pressure from Multiple Fronts
On the domestic front, attention was focused on Sunday’s elections. Mexicans will vote for over 5,000 candidates competing for more than 840 positions as judges and magistrates, including Supreme Court justices.
“The peso is being affected by multiple fronts,” stated Monex Grupo Financiero in an analysis note. “We anticipate a range between 19.33 and 19.52 overnight, considering the dollar’s strength and caution surrounding Sunday’s local electoral process,” they added.
Over 1% Gain in May
The peso’s decline extended its weekly loss, with the currency hitting a low since early October at 19.1815 on Wednesday. Compared to the previous Friday’s close of 19.2398, the peso dropped 15.59 centavos or 0.81%.
Despite the daily fluctuations, the peso maintained a positive balance in May, buoyed by improvements in the trade environment with agreements reached between the United States and several countries. In May, the peso gained 21.79 centavos or 1.11% compared to April’s close of 19.6136 pesos.
Key Questions and Answers
- What happened to the Mexican peso on Friday? The peso depreciated against the US dollar, affected by increased market risk perception and news from the United States. It closed the week with losses but maintained a robust improvement over May.
- What are the new concerns affecting the peso? US President Donald Trump accused China of violating a trade agreement, and a court of appeals reinstated his tariffs after another court ordered him to halt nearly all of them.
- What are the factors influencing the peso’s performance? The Mexican peso is being affected by multiple fronts, including the dollar’s strength and caution surrounding Sunday’s local electoral process.
- How did the peso perform in May? Despite daily fluctuations, the peso maintained a positive balance in May, supported by improvements in the trade environment and agreements between the United States and other countries. It gained 1.11% compared to April’s close.
