The Mexican peso depreciated on Friday morning to commerce at near 19 to the US greenback, a weakening of greater than 2% in comparison with its place every week in the past.
After closing at 18.87 to the greenback on Thursday, the peso fell to as little as 18.98 to the dollar early Friday.
At 11:15 a.m. Mexico Metropolis time, the USD:MXN trade price was 18.94, in response to Bloomberg.
The depreciation of the peso in early buying and selling on Friday got here after the publication of weaker-than-expected employment knowledge in america.
Knowledge exhibiting that non-farm payrolls within the U.S. elevated by 73,000 jobs in July — effectively beneath the 110,000 jobs economists polled by Reuters had predicted — raised expectations that america Federal Reserve will reduce its federal funds price in September.
In Mexico, the Financial institution of Mexico printed knowledge on Friday that confirmed that incoming remittances declined 16.2% yearly in June to US $5.2 billion.
At 18.94 to the greenback at 11:15 a.m., the peso was round 2.2% weaker than its closing place on July 23, a day on which Mexico’s foreign money reached 18.53 to the dollar, its strongest place of 2025.
The 18.98 price to which the peso depreciated early Friday represented a 2.3% depreciation for the foreign money in comparison with its closing place of 18.54 to the greenback final Friday.
Because the peso misplaced floor towards the greenback early Friday, the dollar depreciated towards a basket of six main foreign currency echange, as proven in a decline of the U.S. Greenback Index.
A nasty week for the peso
The peso depreciated on Monday to shut at 18.76 to the greenback earlier than appreciating barely on Tuesday to finish the day at 18.75, in response to the Financial institution of Mexico.
On Wednesday, the peso declined to 18.85 to the dollar. It fell once more on Thursday to shut at 18.87.
The depreciation on Thursday and Friday morning occurred regardless of President Claudia Sheinbaum reaching a cope with U.S. President Donald Trump on Thursday that allowed Mexico to keep away from the implementation of a 30% tariff that was scheduled to take impact right this moment.
The peso depreciated in July, ending a 6-month streak of beneficial properties
The peso depreciated 0.6% in July, in response to Financial institution of Mexico knowledge.
Its closing place on the finish of the month — 18.87 — was 11 centavos above the 18.76 USD:MXN price on the finish of June.
The depreciation in July got here after a six-month streak of beneficial properties for the peso.
Listed below are the Financial institution of Mexico closing USD:MXN charges for the ultimate buying and selling day of each month since December.
- December 31: 20.88
- January 31: 20.69 (peso appreciated 0.9% in a single month)
- February 28: 20.58 (peso appreciated 0.5%)
- March 31: 20.46 (peso appreciated 0.6%)
- April 30: 19.61 (peso appreciated 4.3%)
- Might 30: 19.39 (peso appreciated 1.1%)
- June 30: 18.76 (peso appreciated 3.3%)
- July 31: 18.87 (peso depreciated 0.6%)
Even with the depreciation of the peso to above 18.90 to the greenback on Friday morning, Mexico’s foreign money has gained greater than 10% towards the dollar this yr.
The peso, nonetheless, is considerably weaker than its strongest place of 2024, which was 16.30 to the dollar on April 8 of final yr.
With reviews from El Financiero and Excélsior
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