Home Business News Mexican Peso strengthens at week’s end ahead of this week’s BANXICO meeting

Mexican Peso strengthens at week’s end ahead of this week’s BANXICO meeting

24th Jun 24 9:42 am

The Mexican peso began Friday on a positive note, buoyed by market optimism as President-elect Claudia Sheinbaum appointed the first members of her incoming cabinet.

Key appointments, such as Marcelo Ebrard as Secretary of Economy and the continuation of Rogelio Ramírez as Secretary of Finance, aim to reassure the markets.

These announcements could help reduce uncertainty about the government’s upcoming policy steps and may support a peso that has previously been significantly weakened by political risks.

Additionally, the establishment of a BYD manufacturing plant in Mexico, which will create 10,000 jobs, had a positive impact on the peso, as the country attracts foreign direct investment that can help boost economic activity. At the same time, while the dollar advanced against major currencies, the peso maintained its strength despite stronger-than-expected U.S. PMI data released today.

The market is now focused on the Mexican inflation data to be released on Monday and the Bank of Mexico (Banxico) decision scheduled for Thursday.

Banxico is expected to keep the interest rate unchanged. This decision seems appropriate in an environment where inflation has been rising for the past four months, and the Mexican peso has experienced considerable depreciation due to the results of the presidential elections.

In fact, this has led the Mexican institution to warn that it might intervene directly to mitigate the impacts on the currency.

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