Mexican Peso Appreciates Against the Dollar for Fifth Consecutive Day

The exchange rate between the Mexican peso and the U.S. dollar closed at 19.1399 pesos, marking an appreciation of 0.39% or 7.43 cents from the previous Friday’s close, following a holiday commemorating the start of Mexico’s Independence.

On Tuesday, the Mexican currency strengthened against the U.S. dollar, closing at 19.1399 pesos. The exchange rate fluctuated between a high of 19.4058 and a low of 19.0920, but remains within an upward trend that began on April 9, 2024. Meanwhile, the U.S. Dollar Index increased by 0.22%, rising from 100.71 points yesterday to 100.98 points at the market close on Tuesday.

The appreciation of the Mexican peso is attributed to investors taking advantage of favorable conditions in Mexico before potential credit rating cuts and challenges related to judicial reforms expected to be implemented by June.

Markets are also awaiting the Federal Reserve’s monetary policy decision on Wednesday, with expectations of a 50 basis point rate cut according to the FedWatch tool.

Over the past five days, the Mexican peso has appreciated by 4.73% or 95.12 cents, moving from 20.0911 pesos per dollar on September 10 to 19.1399 pesos per dollar on September 17.

In addition, the main index of the Mexican Stock Exchange (BMV), the S&P/BMV IPC, which tracks the most traded local stocks, closed at 52,273.53 points. Mexican stocks rose on Tuesday, marking five consecutive days of gains despite the publication of the judicial reform in the Diario Oficial de la Federación (DOF) over the weekend.

The S&P/BMV IPC index increased by 0.49%, rising from 52,016.85 points on Friday, September 13, to 52,273.53 points on Tuesday, September 17.