Local Currency Approaches Psychological Zone of 17 Units
The local currency has come close to reaching the psychological zone of 17 units, with a minimum of 17.02 per dollar in the session. Compared to its closing value last year, it has gained 2 pesos and 45 cents.
Mexican Peso Hits New Low for the Year
The Mexican peso marked a new low for the year this Friday and recorded a significant cumulative advance for the week. In a day of unpredictable movement that ultimately resulted in gains for the Mexican currency, the dollar price has shown improvement in 2023.
Exchange Rate Ends Session with Positive Performance
The exchange rate concluded the session at the level of 17.0582 units per dollar, according to data from the Bank of Mexico (Banxico). This represents an appreciation of 5.81 cents, equivalent to a 0.34 percent variation, compared to yesterday’s closing rate of 17.1163 pesos per greenback.
Cumulative Advance in Five Trading Days
Compared to the closing rate of 17.2716 units per dollar on the previous Friday, the cumulative advance over the course of five trading days amounts to 21.34 cents or 1.24 percent. This positive trend follows the Federal Reserve’s decision to leave its rate unchanged on Friday.
Deepen Your Progress
Reaching its peak during the day, the exchange rate reached a minimum of 17.0241 pesos per dollar, a level not seen since December 2015, approximately seven and a half years ago. In comparison to December 19.5089, the local currency has gained 2 pesos and 45 cents or 12.56 percent this year.
Market Awaits New Economic Data
Following the pause in the Federal Reserve’s tightening cycle, the market is eagerly awaiting new economic data that will help the central bank determine the future course of interest rates. The Fed has hinted that there may be another rate hike, but market operators are only anticipating a 25 basis point increase, despite the central bank’s suggestion of a potential half percentage point hike.
Dollar Weakens Amid Bets on Early End to Rate Increases
The Dollar Index (DXY), which measures the value of the greenback against a basket of the other six G7 currencies, rose by 0.19% to 102.30 points at the close. However, it experienced a 1.21% drop over the week, marking the third consecutive week of decline after reaching a minimum in early May.
