The Mexican peso opened Friday’s trading session with slight losses against the U.S. dollar, influenced by ongoing risk aversion stemming from geopolitical conflicts in the Middle East. According to data from Bloomberg, the peso depreciated by 0.03 percent, settling at 20.22 pesos to the dollar—an increase of 2 centavos compared to its closing rate of 20.20 on Thursday, December 26.
Financial analysts at Banco Base noted that thin liquidity conditions in the foreign exchange market are expected to persist through the remaining trading days of the year, potentially amplifying short-term currency fluctuations. “It is important to remember that there is low liquidity in the foreign exchange market, which will continue to be observed in the last sessions of the year. In addition, little relevant economic information will be published. Therefore, it is likely that the fluctuations in the exchange rate in the last days of December are due to comments on the political direction of Mexico or information from abroad,” the bank’s experts commented.
Dollar Quotes at Banks
At bank counters, the dollar is being sold at 20.70 pesos and purchased at 19.59 pesos, according to Banamex.
Global Currency Indices and Bond Markets
In global currency markets, the U.S. Dollar Index (DXY), which measures the dollar’s strength against a basket of six major currencies, declined 0.18 percent to 107.93 points. Similarly, the Bloomberg Dollar Index (BBDXY) edged down 0.06 percent to 1,301.81 units.
In the bond market, the yield on the 10-year U.S. Treasury is 4.59 percent, while Mexico’s 10-year bond holds at 10.82 percent.
Comparisons with Other Emerging Markets
Although the Mexican peso has recorded only marginal losses, other currencies have experienced sharper depreciation on December 27. The Russian ruble lost 3.09 percent, followed by the Israeli shekel at 0.48 percent, the Colombian peso at 0.35 percent, the Indian rupee at 0.32 percent, and the South Korean won at 0.27 percent.
Market observers will be closely watching geopolitical developments, domestic political commentary, and any unexpected economic announcements for further indications of how the peso—and emerging market currencies more broadly—will fare in the closing days of the year.
The Mexican peso opened Friday’s trading session with slight losses against the U.S. dollar, influenced by ongoing risk aversion stemming from geopolitical conflicts in the Middle East. According to data from Bloomberg, the peso depreciated by 0.03 percent, settling at 20.22 pesos to the dollar—an increase of 2 centavos compared to its closing rate of 20.20 on Thursday, December 26.
