Quick overview
- The Mexican peso appreciated slightly against the U.S. dollar, closing at 19.4746 pesos per dollar after a recent interest rate cut by Banxico.
- Traders are focusing on upcoming domestic data, including GDP and inflation figures, set to be released next week.
- Banxico cut its benchmark interest rate by 50 basis points to 8.50%, marking the seventh consecutive cut and indicating potential for further reductions.
- Despite the slight gain on Friday, the peso experienced a marginal weekly decline of 0.04%.
The Mexican peso appreciated slightly against the U.S. dollar in Friday’s trading session, showing limited movement following a sharp interest rate cut by the Bank of Mexico (Banxico).
Traders are now turning their focus to key domestic data due next week, including GDP and inflation figures.
The exchange rate closed the session at 19.4746 pesos per dollar, compared to 19.5028 in the previous session—according to central bank data—representing a gain of 2.82 centavos, or 0.15%, for the peso.
USD/MXN
The dollar-peso pair traded in a narrow range, with a high of 19.5667 and a low of 19.4358. Meanwhile, the U.S. Dollar Index (DXY), which measures the greenback against a basket of six major currencies, rose 0.29% to 101.10 points.
Mexico Monetary Policy
As widely expected, Banxico cut its benchmark interest rate by 50 basis points on Thursday—the third consecutive move of that magnitude—bringing it down to 8.50%. The decision was unanimous and marked the seventh straight cut, reinforcing dovish expectations. The central bank also signaled it could implement further cuts in the near term.
Despite Friday’s modest gain, the peso posted a marginal weekly decline of 0.04%, compared to last week’s close of 19.4669. Investors now await the release of key macroeconomic data on Thursday, which will provide insight into the health of the Mexican economy.
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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