Mexican Peso Breaks Losing Streak After Testing the 20-Unit Barrier.

The Mexican peso appreciated slightly against the US dollar during Thursday’s session, breaking a three-day losing streak after temporarily surpassing the 20 pesos per dollar threshold. The currency’s movements are closely tied to developments in the United States.

The exchange rate closed the day at 19.8807 pesos per dollar. This represents an increase of 5.99 cents, or 0.30%, compared to the previous official close of 19.9406 pesos, according to data from the Bank of Mexico (Banxico).

Throughout the day, the dollar traded within a range, peaking at 20.0310 pesos and dropping to a low of 19.8362 pesos. The US Dollar Index (DXY), which compares the greenback to a basket of six currencies, rose by 0.19% to 103.79.

Earlier in the session, the peso climbed to a level not seen in over a month. Recently, the peso had faced downward pressure as market participants priced in the possibility of Donald Trump winning the upcoming US elections. Signs of a sell-off against the peso were particularly fueled by trends in US retail sales and the risks associated with a potential Trump victory.

In economic indicators, it was reported that retail sales in the United States rose more than expected in September, while new unemployment claims unexpectedly dropped to 241,000 last week. Following these marginally better-than-expected retail sales data, concerns about an economic slowdown in the US have eased, although expectations remain that the Federal Reserve has limited room for maneuver.