Peso Edges Up 0.06% as Banxico Rate Decision Looms

The Mexican peso edged higher on Thursday, gaining 0.06% to trade at MX$19.36 per dollar, supported by a weaker US dollar and investor focus on Mexico’s Central Bank (Banxico) interest rate decision later in the day.

This marks the peso’s third straight session of gains as markets anticipate a 50-basis-point cut to Banxico’s benchmark interest rate, currently at 9%. Such a move would align with the central bank’s recent trend of consecutive rate reductions.

In the United States, mixed economic data pressured the dollar. While retail sales rose, the Producer Price Index (PPI) declined in April, and weekly jobless claims held steady.

The Mexican Stock Exchange (BMV) also reflected caution, with the S&P/BMV IPC index falling 0.59% to 57,304.60 points, extending its losing streak to three sessions.

Mining giant Peñoles was among the hardest hit, tumbling 7.66% and leading losses in the broader market. Investors remain wary as they await clarity on both domestic and global monetary policies.