The Mexican peso falls due to concerns about judicial reform

The Mexican peso depreciates against the dollar for the third consecutive session as the market anticipates the release of the Federal Reserve’s July meeting minutes later today.

This Wednesday morning, the peso has fallen, with the exchange rate at 19.1202 pesos per dollar. This represents a decline of 12.43 cents, or 0.65%, compared to the official closing rate of 18.9959 pesos yesterday, according to data from the Bank of Mexico (Banxico).

The dollar is trading within a broad range, with a high of 19.1655 pesos and a low of 18.9301 pesos. The U.S. Dollar Index (DXY), which measures the greenback against six major currencies, was up 0.02% at 101.47 points.

Investors are looking for explanations from the U.S. central bank regarding its decision to keep interest rates unchanged at its most recent meeting and are also hoping for hints about a possible rate cut in September.

Meanwhile, the peso continues to face pressure for the second day, surpassing the psychological level of 19 pesos per dollar. Analysts attribute this movement to renewed local concerns about the controversial judicial reform proposal. The ruling party, Morena, aims to reform the justice system, leading to a strike in the sector. Investors are wary of potential changes that could undermine checks on presidential power and are closely following the developments.