The Mexican peso lost ground on Wednesday morning, marking its third consecutive day of decline. The local currency fell due to the overall strengthening of the dollar and renewed concerns about the upcoming November elections in the United States.
The spot exchange rate reached 19.8676 pesos per dollar. Compared to yesterday’s official closing rate of 19.6982 units, as reported by the Bank of Mexico (Banxico), this represents a drop of 16.94 cents or 0.86 percent for the Mexican currency.
The dollar price fluctuated between a maximum of 19.9389 units and a minimum of 19.6765 pesos. The Dollar Index (DXY), which measures the greenback against a basket of six currencies, rose 0.20% to 103.47 points.
Former U.S. President and current Republican presidential candidate Donald Trump stated that if he wins the upcoming election, he might impose tariffs exceeding 200% on cars imported from Mexico.
This could significantly impact the local economy, as the automotive industry is a key driver. Market participants are anticipating volatility and upward pressure on the exchange rate following the U.S. elections scheduled for November 5th.
Analysts from the local firm Banco Base shared this insight in their analysis notes. The Mexican peso has now experienced three consecutive days of losses, accumulating a decline of more than 3%.
According to analysts from Grupo Financiero Banorte, the currency is expected to fluctuate between 19.95 and 19.73 per dollar for the remainder of the session.
These developments highlight the interconnectedness of global economies and the impact of political events on currency markets.
As the U.S. election approaches, investors and traders will likely monitor potential policy changes closely. These changes could significantly affect trade relations between the two countries.
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