Mexican peso falls sharply amid U.S. election uncertainty.

Investors are also awaiting key inflation and GDP figures from the largest economy, as well as Mexico’s bi-weekly inflation data.

The Mexican peso depreciated on Tuesday, leading losses among regional peers, as the market focused on U.S. election information and awaited key inflation and GDP figures from the largest economy.

The exchange rate ended the day at 18.1690 units, compared to its previous close of 17.9408 pesos, according to the official data from Banco de México (Banxico). This represents a decline of 22.82 cents, or 1.27%.

The dollar’s price fluctuated with a high of 18.1927 and a low of 17.9297. The Dollar Index (DXY) from the Intercontinental Exchange, which measures the greenback against six currencies, rose 0.13% to 104.45 units.

Concerns persist over the elections of our main trading partner. Investors are keen to know who will replace President Joe Biden as the Democratic candidate after his resignation over the weekend.

It appears that Vice President Kamala Harris may run against the Republican candidate Donald Trump, though this is not yet confirmed. An unofficial Associated Press poll suggests Harris has enough support to become the candidate.

Amidst the political uncertainty, investors await U.S. inflation and GDP data for clues on future Federal Reserve (Fed) rate decisions. Mexico will release its bi-weekly inflation data tomorrow.