The peso had its best level against the dollar since the end of July of last year, amid investor expectations about a possible cut to the Fed’s reference interest rate next week.
The exchange rate stood at 18.2389 pesos per dollar, the best level for the national currency since July 23, 2024, when it hit a minimum of 18.1690, according to closing data from Banxico.
“The peso benefited from investors’ expectations about a possible cut in the reference interest rate by the Fed next week,” the Monex financial group stated in a report.
With today’s data, the peso appreciated 0.25% against the greenback.
Despite the appreciation of the peso, there are still upward risks for the exchange rate, the Base group warned.
The financial firm indicated in a report after the closing of the day that the exchange rate has remained low due to carry trade operations, where the interest rate differential and the risk aversion of investors and the perception of risk about Mexico are very relevant.
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He specified that in this context, the comments that arise regarding the review of the USMCA that could increase risk aversion regarding Mexico, the comments of rating agencies regarding Mexico’s high fiscal deficit and the government’s inability to reduce it according to what was initially projected, and the possibility of a decrease in Mexico’s interest rate differential with the United States and/or Japan will be relevant.
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