The local currency ended the day below 19 units per dollar, though it trimmed its gains following an interest rate cut announcement by Banxico. The
The local currency ended the day below 19 units per dollar, though it trimmed its gains following an interest rate cut announcement by Banxico.
The Mexican peso gained ground against the dollar for the second consecutive session, supported by new U.S. labor market data and a local inflation report that showed an expected increase.
The exchange rate closed the day at 18.9681 pesos per dollar, compared to yesterday’s level of 19.2864, according to data from the Bank of Mexico (Banxico). This represented a gain of 31.83 centavos, equivalent to a 1.65% increase.
The dollar’s price fluctuated within a wide range, with a high of 19.3620 pesos and a low of 18.8653. The U.S. Dollar Index (DXY) from the Intercontinental Exchange, which compares the greenback against six major currencies, edged up 0.02% to 103.22 points.
In the United States, initial jobless claims fell by 17,000 to 233,000 in the week ending August 3, marking the largest drop in nearly 11 months. This data eased concerns following Friday’s employment report.
USD/MXN
On the local front, a higher-than-expected inflation figure released in the morning also supported the currency. The National Consumer Price Index (INPC) rose in July to an annual rate of 5.57%, as anticipated.
However, later in the day, Banxico announced a 25-basis point interest rate cut to 10.75%, contrary to expectations that the rate would remain unchanged. This announcement tempered the peso’s advance, but it still managed to close below 19 units.
The peso appreciated on favorable economic news for the currency market, with accelerating inflation. Investors bet on short-term, highly liquid peso assets.
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