The Mexican peso is gaining ground against the dollar this Friday morning. The local currency is gaining ground after Federal Reserve (Fed) Governor Christopher Waller said yesterday that he continues to believe the central bank should cut rates this month.
The spot exchange rate is at 18.7178 per dollar. Compared to yesterday’s close of 18.7569, according to official data from the Bank of Mexico (Banxico), this represents an increase of 3.91 cents, equivalent to 0.21 percent, for the peso.
The price of the dollar is moving in a range between a high of 18.7685 and a low of 18.6916. The Intercontinental Exchange’s Dollar Index (DXY), which compares the US dollar to six benchmark currencies, is down 0.42%, or 98.24 points.
They Advocate for a Rate Cut
Fed Governor Christopher Waller yesterday outlined the argument he will present to his colleagues in two weeks: cut interest rates now because the labor market is weaker than expected and because tariff-induced inflation isn’t a concern.
“The economy continues to grow, but its momentum has slowed significantly, and risks to the employment mandate have increased,” Waller told a group of New York University economists who closely monitor the bond market.
Peso Consolidates in Search of a Signal
Support for a possible rate cut caused the dollar to weaken, giving up some of its broader gains in recent days. The Mexican peso, meanwhile, continues to consolidate, searching for signals that would define a direction for its price.
“We believe the recovery will prevail; a break below the 18.70 peso level will establish a favorable technical signal. In this sense, the resistance it could face is at 18.60 pesos,” said Grupo Financiero Banorte in an analysis note.
Source: eleconomista
