The Mexican peso started the week on a downward trend against the US dollar.
The local currency lost ground as the greenback gained strength.This shift occurred amid growing speculation about Donald Trumps potential victory in the November elections.
The spot exchange rate reached 20.0055 pesos per dollar.Compared to Fridays official closing rate of 19.8860 pesos, as reported by the Bank of Mexico (Banxico), the peso suffered a loss of 11.95 cents, equivalent to 0.60 percent.The dollars price fluctuated between a high of 20.0746 pesos and a low of 19.8685 pesos.
The Dollar Index (DXY), which measures the greenback against six reference currencies, rose by 0.28% to 103.78 units.Analysts at Monex Grupo Financiero explained the situation in a report.
They noted that the Republican candidates aggressive tariff proposals could slow down Mexicos economic growth.Investors Eye Fed Speeches as Mexican Peso Weakens to 20 per Dollar.
(Photo Internet reproduction)However, this slowdown could potentially affect the benefits of nearshoring in the country.
Investors focused on speeches by Federal Reserve officials like Neel Kashkari and Jeffrey Schmid.They hoped to gain insights into the central banks upcoming announcements regarding monetary policy.
In Mexico, attention turned to the release of economic data throughout the week.This included figures from the Global Indicator of Economic Activity (IGAE) and retail sales for August, as well as inflation data for the first half of October.In short, the economic indicators scheduled for release on Tuesday, Wednesday, and Thursday were expected to provide valuable insights.These insights would shed light on Mexicos current economic landscape.
The data could potentially influence future currency movements and investor sentiment.