Puerto Vallarta, Mexico – The Mexican peso concluded Friday’s trading session with a depreciation against the US dollar, reversing earlier gains after the release of national unemployment figures. Market participants also shifted their focus to the anticipated policies of the incoming administration of Donald Trump in the United States.
The peso closed with a 0.26% decline, settling at 20.6724 pesos per dollar, according to data from the Bank of Mexico (Banxico). During the session, the exchange rate fluctuated between a low of 20.6220 and a high of 20.7070 pesos per dollar.
On a weekly basis, the peso experienced a 1.74% depreciation against the dollar, marking the second consecutive week of losses for the Mexican currency.
Meanwhile, the Intercontinental Exchange’s Dollar Index (DXY), which tracks the dollar’s performance against a basket of six major currencies, recorded a 0.29% drop, closing at 108.93 points.
Economic Indicators and Market Reactions
“Today, the peso is affected by local unemployment figures, which showed an upturn and reinforce the narrative of a continuous cycle of cuts by Banxico in 2025, contrasting with the restrictive policy of the Federal Reserve,” stated Janneth Quiroz Zamora, Director of Economic, Foreign Exchange and Stock Market Analysis at Grupo Financiero Monex.
According to the latest data, Mexico’s unemployment rate edged up to 2.6% in November 2024, rising from 2.5% in October. Despite the increase, the rate remained below market expectations of 2.7%.
Policy Divergence and Market Implications
The slight uptick in unemployment has sparked discussions about the potential trajectory of Banxico’s monetary policy. Analysts suggest that Banxico may continue its cycle of interest rate cuts in 2025 to stimulate economic growth, diverging from the more restrictive stance anticipated from the US Federal Reserve.
Investors are closely monitoring the evolving economic landscape in Mexico, as well as the early signals from the Trump administration regarding trade and monetary policy. The peso’s performance reflects broader market sentiment, influenced by both domestic indicators and international economic trends.
Outlook for the Peso
Analysts predict that the peso may face continued volatility as global markets digest potential policy shifts in the US and Mexico’s economic data continues to shape expectations. The peso’s depreciation highlights the sensitivity of emerging market currencies to economic signals and political developments in major economies.
Puerto Vallarta, Mexico - The Mexican peso concluded Friday’s trading session with a depreciation against the US dollar, reversing earlier gains after the release of national unemployment figures. Market participants also shifted their focus to the anticipated policies of the incoming administration of Donald Trump in the United States.
