Dollar Stays Under Pressure As Peso Tests New Lows And Mexico Stocks Push Higher

Key Points

• USD/MXN held near 17.35 as the dollar index hovered around 97.1 and global dollar selling persisted.
• Charts show extreme oversold momentum in USD/MXN, raising bounce risk despite the downtrend.
• Mexico’s IPC index stayed strong near 68,706, with gains led by miners and infrastructure names.

The dollar’s stumble is starting to look less like a one-day wobble and more like a theme. In early Tuesday trade, USD/MXN hovered near 17.35 after fresh selling pressure left the pair at the lower edge of its recent range.

The macro story came from outside Mexico. The dollar index sat near 97.1 after sliding toward a four-month low, with traders focused on yen-driven moves and renewed debate about U.S. policy credibility. In that environment, high-carry currencies kept finding buyers.

For Mexico, the political subtext matters. Investors are still rewarding predictable rulemaking, central-bank orthodoxy, and restraint on fiscal adventures.

The market remains wary of policies that look like quick fixes, taxes that distort prices, or headline tariffs that feed inflation. Banxico’s recent communications have reinforced the message: easing continues, but only as long as inflation risks behave.

Overnight pricing reflected that balance. U.S. 10-year yields held near 4.22, oil eased with WTI near $60.37 and Brent near $64.46, and risk appetite stayed selective. Mexico equities benefited from the calmer side of that mix.

Technicals explain the tension. On the daily chart, USD/MXN momentum is deeply oversold, with RSI near 18.5. The weekly RSI also sits in the mid-20s.

The four-hour chart shows stabilization, but the downtrend remains intact. Support sits near 17.32, then 17.26. Resistance starts near 17.40–17.43, then 17.52–17.54.

Mexico’s IPC index remained constructive. The daily chart showed 68,706, up 0.75%, while the four-hour view showed a modest pullback from local highs. Momentum is elevated, with RSI above 70 on the daily view.

Top Winners

• Peñoles +3.97%
• Pinfra +3.77%
• Grupo México +3.35%
• Banco del Bajío +2.42%
• Gentera +1.90%

Top Losers

• Genomma Lab -2.42%
• Walmex -1.38%
• Becle -1.35%
• Volaris -1.21%
• Cemex -1.16%

This is part of The Rio Times’ daily coverage of Mexican markets and Latin American financial news.

For regional context, see the Brazil’s Ibovespa report: Brazil’s Ibovespa.

For regional context, see the Argentina’s Merval report: Argentina’s Merval.