Mexican Peso Surpasses 20 per Dollar as U.S. Election Nears

The Mexican peso depreciated against the U.S. dollar in Monday’s session, reflecting increased caution in the market as the U.S. presidential election, scheduled for November 5, draws near.

The exchange rate closed at 20.0317 pesos per dollar, compared to 19.9684 on Friday, according to official data from the Bank of Mexico (Banxico). This decline of 6.33 centavos, or 0.32%, highlights the peso’s weakening. Throughout the day, the dollar fluctuated between a high of 20.0946 and a low of 19.9443 pesos. Meanwhile, the U.S. Dollar Index (DXY), which measures the dollar against a basket of six major currencies, rose 0.04% to 104.30 points.

With just over a week until the U.S. election, markets remain highly sensitive to developments. Upcoming economic data could also trigger erratic movements.

There is still a possibility that Donald Trump could return to the presidency of the world’s largest economy, a prospect that would bring significant changes to global trade—especially in U.S.-Mexico relations, which were often criticized by the former president.

Traders are also awaiting key economic reports this week. Notably, third-quarter GDP data from both the U.S. and Mexico will be released midweek, providing further insight into the economic outlook.

Mexico’s stock markets closed Monday’s session with slight gains, ending a five-day losing streak. Local indexes edged higher amid a market focused on the ongoing earnings season.

Investors remain cautious, closely monitoring corporate reports and global developments as the U.S. presidential election approaches. The modest recovery reflects a tentative optimism as the market navigates volatility and economic uncertainties.