The Mexican peso continues to weaken against the dollar

The strength of the dollar, awaiting statements from central banks in industrialized economies, continues to weaken the Mexican peso.

At the opening of the American markets, the Mexican currency extended yesterday’s losses, depreciating 0.98 percent, to trade at around 18.8112 units per dollar.

The Federal Reserve’s fifth two-day meeting of the year kicks off on Tuesday, with the U.S. monetary authority expected to keep its benchmark rate unchanged at 5.25 to 5.50 percent, but investors are looking for more clues about the next rate move. Also awaited are actions by the Bank of Japan, which will continue amid a flurry of corporate results, and the results of the JOLTS survey on job openings in the United States for June, where moderation is expected.

“Today, the Mexican peso is affected by the strong advance of the dollar index, DXY, and the mixed figures of the gross domestic product (GDP) in Mexico. The Mexican economy grew 2.2 percent in annual terms in the second quarter of 2024, but 0.2 percent compared to the previous quarter, implying a lower reading than expected by the market,” said the analysis area of ​​Monex.

The dollar index, which measures the dollar’s performance against a basket of six international currencies, rose 0.18 percent, pending labor market figures, to 104.507 units.

Wall Street, meanwhile, was mixed, with the Nasdaq falling 0.14 percent, while the Dow Jones and S&P 500 advanced 0.24 and 0.03 percent, in that order.

The Mexican Stock Exchange, for its part, rose 0.47 percent to 52,763.01 points.

Fears of trade retaliation in the event of a Donald Trump election victory in the United States increase the risk of a delay in the recovery of China’s economy.

The slowdown in China, the world’s largest importer of crude oil, is being felt on the oil market. The barrel of Brent crude oil fell below the 80 dollar barrier, falling 0.80 percent to 78.38 dollars. The barrel of West Texas crude oil, the benchmark in the United States, fell to 75 dollars, down 0.92 percent. Hopes for an easing of the Middle East crisis and doubts about demand from China are correcting the recent rises in the price of crude oil.