The Mexican peso weakened against the US dollar on Tuesday, impacted by the greenback’s strength in a market digesting weak manufacturing data from the United States.
The exchange rate closed the session at 19.6982 pesos per dollar, compared to 19.3953 pesos the previous day, according to official data from the Bank of Mexico (Banxico). This represents a decline of 30.29 cents, equivalent to a 1.56% loss.
Throughout the day, the dollar traded within a range of 19.7593 pesos at its peak and 19.3683 at its lowest point. Meanwhile, the US Dollar Index (DXY), which measures the greenback against a basket of six major currencies, slipped 0.06% to close at 103.24.
USD/MXN
Traders were reacting to disappointing US manufacturing data. The New York Fed’s manufacturing index posted a reading of -11.9, well below the expected 3.85 and down from the previous 11.50. This fueled concerns that the US economy could slow more than anticipated, potentially dragging down Mexico’s economy.
In addition to economic data, analysts pointed to other factors weighing on the peso, including the upcoming review of the United States-Mexico-Canada Agreement (USMCA) in 2026 and the approach of the US presidential elections, where Donald Trump is a key candidate. These developments have heightened risk aversion toward the Mexican currency.
Further weakening sentiment, investors were monitoring expectations around US interest rates. The FedWatch tool indicated a 90% probability of a 25-basis-point rate cut in November, signaling a shift towards moderate easing.
