The peso depreciated on Friday amid a global advance in the dollar following the release of solid US employment figures, which reinforced the prospect that the Federal Reserve (Fed) will maintain a cautious approach to reducing interest rates this year.
Nonfarm payrolls added 256,000 jobs in December, well above market expectations, bringing the unemployment rate down to 4.1% from a previous level of 4.2%.
The domestic currency closed at 20.7030 units, with a decline of 1.09% compared to the LSEG reference price on Thursday, marking its fourth straight day of losses, also hit by concerns about the implications of Donald Trump’s next term, which begins the January 20.
In the morning the peso weakened to 20.7520, one of its worst levels so far in 2025, after the US labor report.
“The day’s agenda was light but relevant, highlighting the non-agricultural payrolls report in the United States,” said Monex Grupo Financiero, in an analysis note.
Read: Peso falls due to reports that Trump is considering declaring a national emergency in the US to impose tariffs
“Towards overnight, we would expect the peso to oscillate in a range between 20.60 and 20.78, considering the weakening of the session and expecting a fairly modest agenda on Monday,” he added.
Following the data, traders were betting that the Fed will wait at least until June to reduce its interest rate and end its cycle of cuts. Before the report, they expected the reduction in May and that there was a 50% chance of a second reduction before the end of the year.
The peso added a weekly depreciation of 0.41%.
The benchmark S&P/BMV IPC stock index fell 0.42% to 49,596.70 points. Even so, it ended the week with a cumulative return of 1.31%.
The securities of the stock market operator Grupo BMV led the decline on Friday, with 4.79% less to 31.41 pesos, followed by those of Vesta, dedicated to the development and administration of industrial warehouses and distribution centers, which subtracted 2.93% to 48.74 weights.
In the secondary debt market, the 10-year bond yield rose three basis points to 10.27%, while the 20-year rate fell five basis points to 10.60%.
With information from Reuters
Little text and great information on our X (formerly Twitter), follow us!
