The Mexican peso continues to decline, closing at 18.45 per dollar.

The dollar fluctuated in an open range with a high of 18.5887 units and a low of 18.3190. The Dollar Index (DXY) from the Intercontinental Exchange, which measures the greenback against a basket of six currencies, remained unchanged at 104.39 points.

Local investors are still concerned about Morena’s controversial justice reform, while globally, the U.S. election continues to cause uncertainty. Yesterday’s inflation report and the legislative environment prompted some hesitant investors to close positions in the national currency, strengthening the dollar.

Earlier, it was reported that the U.S. GDP grew more than expected (2.8% annualized in the second quarter, much higher than the 2% consensus), supporting expectations for a Fed rate cut.

However, local asset pressures prevented the currency from benefiting from the expectation of a wider rate differential. Over three losing sessions, from 17.9408 pesos on Monday, it lost 51.16 cents or 2.85 percent. The exchange rate faced short-term resistance at 18.43 and support at 18.32.

Local pressures were compounded by investor nervousness about the potential consequences of a Donald Trump victory in the November elections, which could include canceling Tesla’s factory in Nuevo León, according to Elon Musk. The U.S. GDP grew 2.8% annualized, as reported by the Bureau of Economic Analysis in its advance estimate for the second quarter. Analysts had predicted 2% in a Reuters survey.