The Mexican peso closed virtually unchanged at 19.3892 per dollar on May 14, 2025, maintaining gains ahead of a widely anticipated 50-basis-point cut by the Bank of Mexico.
Puerto Vallarta, Mexico – The Mexican peso ended Wednesday’s session almost flat against the U.S. dollar, closing at 19.3892 per dollar after touching seven-month highs in the previous session, data from Banxico showed. The local currency eked out a marginal gain of just 0.02% from Tuesday’s close of 19.3926, remaining range-bound as market participants await Thursday’s monetary policy decision by the Bank of Mexico.
Trading in the interbank spot market saw the peso fluctuate between a low of 19.3032 and a high of 19.4250 per dollar. Meanwhile, the ICE Dollar Index (DXY), which measures the greenback against six major currencies, ticked up 0.14% to settle at 101.12, clawing back some losses after its largest one-day slide in over three weeks.
The recent bout of U.S. dollar weakness was driven in part by softer-than-expected U.S. inflation figures, which reinforced expectations that the Federal Reserve may begin cutting interest rates later this year. In Mexico, the peso’s rally has been underpinned by speculation of a half-percentage-point rate cut at Banxico’s May meeting, the third such move in the current easing cycle.
“Overnight, we forecast a trading range of 19.33 to 19.46, reflecting yesterday’s peso gains and positioning ahead of a robust economic agenda today, where we anticipate a 50-basis-point reduction in the Banxico rate,” said analysts at Monex. They added that technical resistance around the 19.30 level has briefly stalled further upside but expect volatility to remain contained ahead of policy announcements.
With inflation in Mexico gradually moderating and the peso already testing levels last seen in October 2024, traders will be watching closely for Banxico’s rate decision and the accompanying statement for clues on the central bank’s path forward. A dovish tone could lead to further peso strength, while any surprise in the policy outlook may spur renewed dollar demand.
Market participants will also be tracking key U.S. economic releases due later this week, including retail sales and durable goods orders, for fresh signals on the Federal Reserve’s policy trajectory. For now, the peso remains pinned near its seven-month peak as investors balance expectations of global rate cuts with domestic monetary developments.
The Mexican peso closed virtually unchanged at 19.3892 per dollar on May 14, 2025, maintaining gains ahead of a widely anticipated . . .
