Mexican Peso Continues Gains Against the Dollar, Reaching July 2024 Low
Mexico City – The Mexican peso continued its upward trajectory on Wednesday, marking its fourth consecutive day of gains against the US dollar. This positive performance is attributed to a weakening dollar, pushing the exchange rate to its lowest point as July 2024.
According to data released by the Bank of Mexico (Banxico), the exchange rate reached 17.8136 pesos per dollar, representing a 0.17% or 3.02 centavo appreciation from the previous close.
Analysts at Banco Base attribute the pesoS strength to uncertainty surrounding the independence of the Federal Reserve, fueled by pressure from the Trump governance to lower interest rates. This uncertainty has bolstered other currencies, including the Japanese yen and the British pound.
The dollar index (DXY), wich measures the dollar’s strength against a basket of six major currencies, fell 0.03% to 99.11 points. The Bloomberg dollar index (BBDXY) also declined,dropping 0.09% to 1,210.49 units.
Currently, the exchange rate at Mexican banks stands at 18.27 pesos per dollar, as reported by banamex.
Other Emerging Market Currencies Also Strengthen
The peso wasn’t alone in its gains. Several other emerging market currencies also appreciated against the dollar, including:
* South Korean Won: +0.82%
* Russian Ruble: +0.54%
* Chilean Peso: +0.44%
* Argentine Peso: +0.29%
* Malaysian Ringgit: +0.21%
* Thai Baht: +0.13%
* Taiwanese Dollar: +0.10%
In the bond market, the yield on the 10-year US Treasury is at 4.15%, while the 10-year Mexican bond yield remains at 9.10%.