Mexican peso remains firm against the dollar despite US interest rate cuts

The US dollar closed the day at 18.47 units per dollar , showing a slight depreciation of 0.21% compared to the previous close of 18.43 pesos , according to Dow Jones data.

In the weekly review, The Mexican currency accumulated a loss of 0.37%. Although year-on-year it still shows a gain of around 9.6%, reflecting its recovery against the US dollar over the past twelve months.

READ: Mexican Stock Exchange advances and reaches new all-time high. Stability amid global adjustments

Despite the interest rate cuts in the United States, the peso managed to maintain its equilibrium thanks to constant flows of foreign investment, the monetary discipline of the Bank of Mexico , and a lower perception of risk in emerging markets.

The day sent a message of resilience: the Mexican peso maintains its stability despite the looser monetary policy environment in the US. The challenge will be to maintain that strength amid a slowing global economy.

Lower volatility in the short term

The exchange rate has risen for three consecutive sessions, and the volatility observed in recent days has been notably lower than that recorded throughout the year. This suggests that the peso is trading with more controlled movements and is less sensitive to external factors that typically put pressure on its value.

Overall, the recent performance of the Mexican peso reflects investor confidence and a more stable exchange rate environment, despite international monetary adjustments and the global economic slowdown.

EE