Mexican peso gains ground against the dollar at close

At the close of the last session, the US dollar averaged 18.58 Mexican pesos, a 0.44% drop from the previous high of 18.67 pesos. This result represents one of the strongest recent closes for the Mexican peso, which remains below the psychological threshold of 19 pesos per dollar.

Market performance was strongly influenced by two key international factors: the release of the consumer price index (CPI) in the United States and the extension of the suspension of tariffs on Chinese products. These factors fueled a favorable environment for emerging market currencies, including the peso.

READ: Mexican stock market rises in line with US indices

However, there are warning signs of red flags at the domestic level. Domestic inflation remains a cause for concern, especially with regard to basic consumption. The basic food basket reached its highest level since 1992 in July, exacerbating the loss of household purchasing power and potentially directly influencing future monetary policy decisions.

In terms of weekly performance, the US currency accumulated a 0.85% drop, consolidating a 5.79% loss over the last year. This negative trend reinforces the perception of a progressive weakening of the dollar in the local market.

In contrast to previous sessions, where the dollar had shown a slight 0.2% gain, the new decline highlights the US currency's difficulty in consolidating a clear direction in the short term. Furthermore, the volatility observed in the last week has been significantly lower than that recorded in the last twelve months, suggesting recent relative stability, although less dynamic than usual.