Ignacio Teson•Monday, February 17, 2025•2 min read
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After a low-activity session due to a U.S. market holiday, the local currency posted a marginal appreciation against the dollar.
The Mexican peso ended Monday’s session nearly unchanged. With reduced market activity in the absence of U.S. trading, the peso recorded a slight gain against the dollar.
The exchange rate closed at 20.3006 per dollar, compared to 20.3040 on Friday, according to official data from the Bank of Mexico (Banxico). This represented a 0.02% appreciation, equivalent to less than a cent.
USD/MXN
The dollar fluctuated between a high of 20.4291 and a low of 20.2650 during the session. Meanwhile, the U.S. Dollar Index (DXY), which tracks the greenback against a basket of six major currencies, edged up 0.01% to 106.72 points.
Fed Speeches and Market Sentiment
Investors focused on remarks from several Federal Reserve officials at various public events. Policymakers remained skeptical about the likelihood of interest rate cuts in the near term.
Fed Governor Michelle Bowman stated that further conviction is needed that inflation will continue to decline before considering rate cuts. Meanwhile, Philadelphia Fed President Patrick Harker noted that, for now, he sees no reason to adjust rates.
Despite the peso’s appreciation, risks to the exchange rate remain, particularly due to concerns that the U.S. could impose broad tariffs on Mexico and Canada starting March 4.
Key Economic Indicators to Watch
This week, markets will be closely watching key economic reports from both Mexico and the U.S., including minutes from the latest monetary policy meetings of the Fed and Banxico, which could influence the peso’s trajectory.
Traders will also keep an eye on political developments in the U.S., particularly related to former President Donald Trump, as these could impact market sentiment. The exchange rate is expected to fluctuate between 20.00 and 20.60 per dollar in the coming days.
Ignacio Teson
Economist and Financial Analyst
Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.
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