Puerto Vallarta, Mexico – The Mexican peso strengthened in early trading on Tuesday as investors awaited Mexico’s economic growth data, set to be released on Friday, February 21, along with key manufacturing indicators from the United States.
As of 6:00 a.m. in Mexico City, the peso had appreciated by 0.26% against the US dollar, trading at $20.23 per dollar. Meanwhile, the Dollar Index (DXY), which measures the performance of the US currency against a basket of major global currencies, dropped by 0.32%.
Investor Focus on Economic Growth and Tariffs
According to financial group Monex, the peso’s movement is expected to remain aligned with the dollar as markets closely monitor developments on tariff policies and the final review of Mexico’s Gross Domestic Product (GDP) for the fourth quarter of 2024.
“Given the disappointing preliminary GDP figure of 0.6%, a revised figure exceeding the initial estimate could create a favorable environment for the peso, counteracting any setbacks caused by dollar fluctuations,” Monex stated in a report.
Peso Leads Global Currency Gains
Among the 16 major global currencies tracked by Bloomberg, the Mexican peso posted the highest gains against the US dollar, appreciating by 0.28%. It was followed by the South Korean won (0.16%) and the Australian dollar (0.05%). Meanwhile, the New Zealand dollar (-0.47%) and the Norwegian krone (-0.34%) recorded the steepest declines.
Exchange Rate at Major Mexican Banks
According to Bloomberg Línea’s early morning review, the exchange rate for the US dollar at major Mexican banks was as follows:
- Banamex: $20.80 pesos
- Banorte: $20.65 pesos
- BBVA México: $20.57 pesos
- Banco Azteca: $20.54 pesos
Additionally, the Official Gazette of the Federation (DOF) set the official exchange rate at $20.2830 pesos per dollar.
Market Outlook
Investors will continue to track upcoming economic releases, including the final GDP figures and manufacturing data from the US, which could influence the peso’s trajectory in the coming days. Any upward revision in economic growth numbers may provide further support for the peso, reinforcing confidence in Mexico’s economic outlook.
As global markets remain volatile, traders and analysts will be closely watching movements in both the peso and the broader economic landscape, particularly in light of upcoming policy decisions and international trade developments.
