Mexican peso advances on Friday, gains 2.2% in first week of Sheinbaum administration

The local currency appreciated following positive U.S. employment data and ended the week with gains, as traders remained optimistic about the change in government.

The Mexican peso strengthened against the U.S. dollar during the week’s closing sessions. The local currency advanced, outperforming its major peers, buoyed by strong employment figures in the United States, and ended the week on a positive note.

The exchange rate closed the day at 19.2587 pesos per dollar. Compared to the previous day’s level of 19.3662, based on official data from the Bank of Mexico (Banxico), the movement represented a gain of 10.75 cents or 0.56% for the peso.

The dollar’s price fluctuated within a wide range, with a high of 19.3960 pesos and a low of 19.1116 pesos. The U.S. Dollar Index (DXY), from the Intercontinental Exchange, which measures the greenback against a basket of six major currencies, rose 0.49% to 102.49 points.

The non-farm payrolls report showed an increase of 254,000 jobs in September, well above analysts’ expectations. Additionally, the unemployment rate fell from 4.2% to 4.1%, indicating solid economic conditions in the U.S., Mexico’s primary trading partner.

The peso benefited from the strong U.S. employment report, which signaled ongoing economic strength in the U.S., likely to support Mexico’s economy due to their strong integration. The peso has gained ground since the transition to the new federal administration, with the expectation that President Claudia Sheinbaum will be more conciliatory than her predecessor. Compared to last Friday’s level of 19.6902 pesos, the peso has gained 43.15 cents, or 2.19%.