Mexican Peso Closes Steady After Hitting Its Lowest Level in Nearly Two Years

The local currency appreciated slightly after hitting its lowest level since October 2022, amid concerns about the U.S. economy and local politics.

The Mexican peso ended Thursday’s session steady, after marginally appreciating following an earlier drop to its lowest level since October 2022. This occurred in a context of uncertainties surrounding the U.S. economy and local political developments.

The exchange rate closed at 19.9318 pesos per dollar. Compared to yesterday’s close of 19.9443, based on official data from the Bank of Mexico (Banxico), this represented a gain of 1.25 centavos, or 0.06%.

During the session, the dollar traded within a range, hitting a high of 20.1530 pesos and a low of 19.8900 pesos. The U.S. Dollar Index (DXY) from the Intercontinental Exchange, which measures the greenback against a basket of six major currencies, dropped 0.23% to 101.12 points.

According to data preceding tomorrow’s highly anticipated U.S. monthly employment report, private sector hiring in August grew at its slowest pace in three and a half years, sending negative signals about the economy.

Meanwhile, in Mexico, traders are awaiting next week’s Senate discussion on the proposed judicial reform bill, which passed in the lower house yesterday.

Despite this marginal gain, the peso’s overall trend remains one of depreciation. It’s worth noting that the currency was one of the strongest against the dollar before the June elections. Since then, the peso has lost more than 16%.