The Mexican peso loses value against the dollar this Tuesday morning. The local currency falls for the second consecutive day, influenced by an unfavorable report on retail sales in the country and awaiting statements from two members of the Federal Reserve.
The spot exchange rate stands at 18.7606 pesos per dollar. Compared to yesterday’s official closing of 18.6985 pesos, according to data from the Bank of Mexico (Banxico), this represents a depreciation of 6.21 cents, equivalent to a variation of 0.33 percent.
The dollar fluctuates within a range with a maximum of 18.8765 pesos and a minimum of 18.6562 pesos. The Dollar Index (DXY), which measures the value of the dollar against six major currencies, falls 0.18% and stands at 101.71 points.
According to recent data from the National Institute of Statistics and Geography (Inegi), retail sales unexpectedly fell 0.5% in June, seasonally adjusted, marking their worst performance since January and exceeding the 0.2% drop that had been anticipated.
“The peso began today’s trading by cutting yesterday’s gains, mainly affected by negative local retail sales data, while markets await biweekly inflation and GDP figures for the end of the week,” Monex noted.
Despite the losses, the currency has recovered part of the initial drop, which exceeded 1%. Some analysts also indicate that the peso remains under pressure due to renewed concern over the controversial reform of the justice system.
On the technical side, it was observed that the price reached the resistance of 18.85 pesos, which could be a validation of a new ceiling before resuming appreciation towards 18.50 pesos, according to a Vector analysis.
Investors are awaiting information emerging from the Jackson Hole symposium at the end of the week, as well as statements from two senior members of the Federal Reserve: Raphael Bostic of Atlanta and Vice Chairman Michael Barr.
