The peso and the BMV advanced driven by a wave of risk appetite amid growing expectations that the United States and China would soon reach an agreement to end their trade disputes.
The dollar stood at 18.3961 pesos, a gain of 0.24% for the national currency compared to the previous session, according to closing data from Banxico.
“The appreciation of the peso is due to an increase in risk appetite amid signs that the United States and China will reach a trade agreement this week,” the Base financial group said in a report.
He added that in the morning, the exchange rate hit the minimum in the session of 18.3608 pesos per dollar, after President Claudia Sheinbaum mentioned that on Saturday she had a call with her American counterpart Donald Trump, to discuss trade issues, since on November 1 the 90-day pause of the 30% tariff exemption, which until now has remained at 25%, ended.
Read: Wall Street has two days with all-time highs after a preliminary agreement between the US and China
Sheinbaum declared today that Trump will give “a few more weeks” of pause to close the agreements that are currently being negotiated, and added that he will hold another call in the “coming weeks” to close an agreement before the USMCA negotiations.
“This is positive for Mexico, but it does not completely eliminate uncertainty, since sectoral tariffs are still in force and the review of the USMCA, scheduled for July 2026, has already begun in practice with public consultations,” Base said.
Adding to investors’ good mood was the prospect that the US Federal Reserve would cut interest rates again in its decision this week.
“The positive global environment has especially favored the currencies of countries with solid economic fundamentals, such as Mexico,” said Antonio Di Giacomo, financial markets analyst for Latin America at the firm XS.com.
“The peso maintains a recovery bias after respecting the 50-period moving average on the daily charts near 18.50. This level is consolidated as a relevant support that could open the door to an additional correction towards 18.30 or even 18.10 if the bearish pressure continues,” he added.
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Specialists also highlighted comments from Mexican President Claudia Sheinbaum, who stated that she spoke with her American counterpart, Donald Trump, on Saturday and that both countries will extend the deadline for negotiating pending trade demands with Washington for a few more weeks.
The attention of participants is also directed to the publication this week of figures for the Gross Domestic Product (GDP) for the third quarter in Mexico
Stock market gains 1.17%
The benchmark S&P/BMV IPC stock index rose 1.17% to 61,860.30 points, in a market with its sights also set on the quarterly results season that ends on Tuesday.
The titles of the conglomerate Grupo Carso led the increases, with 5.39% more to 127.77 pesos, followed by those of the pharmaceutical company Genomma Lab, which added 4.99% to 18.50 pesos.
In the secondary debt market, the yield on the 10-year bond rose five basis points to 8.60%, the same as the 20-year rate, which ended the day at 9.35%.
With information from Reuters
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