The Mexican peso experienced a slight appreciation of 0.07 percent against the U.S. dollar on Tuesday, with the exchange rate closing at 18.75 units per dollar, according too data from the Bank of Mexico. This gain of one cent reflects ongoing market sentiment influenced by international trade developments.
Market analysts, such as gabriela Siller, Director of Economic Analysis at Banco Base, noted that the peso has successfully consolidated below the notable psychological barrier of 19 pesos per dollar. Siller indicated that technical indicators suggest further potential for peso appreciation, though this is expected to occur in a gradual manner.
Investors are closely monitoring the trade relationship between the United States and china. The market is uncertain whether the August 1 deadline for new U.S. tariffs, as warned by the U.S. Secretary of Commerce, will be implemented, or if extended trade truces, similar to those previously agreed upon by China, will be put in place.
Looking ahead, the National Institute of Statistics and Geography (INEGI) is scheduled to release the preliminary estimate for Mexico’s Gross Domestic Product (GDP) for the second quarter on July 30.
On Tuesday, the dollar was being sold at 19.23 pesos and purchased at 18.20 pesos at Banamex branches.
The U.S. dollar index (DXY), which measures the strength of the dollar against a basket of six major developed country currencies, saw an increase of 0.27 percent, reaching 98.90 points. Similarly, the Bloomberg Dollar index (BBDXY) gained 0.15 percent, settling at 1,209.98 units.
In the money markets, the yield on 10-year U.S. Treasury bonds stood at 4.35 percent, while the yield on 10-year Mexican bonds remained at 9.44 percent.
Among emerging market currencies, several experienced declines against the dollar. The Hungarian Forint depreciated by 0.86 percent, the Polish Zloty by 0.69 percent,the Taiwanese dollar by 0.61 percent, the Romanian Leu by 0.41 percent, and the chilean Peso by 0.36 percent.