Peso reached its highest level since August 2024

The Mexican peso closed the week with a marginal appreciation against the dollar, amid a weakening greenback, reaching its highest level since August of last year.

The peso's rise comes at a time when markets appear to have put aside, for the moment, the geopolitical situation in the Middle East, and concerns about tariff talks with the United States are resurfacing.

The Mexican peso ended the week at 18.8529 pesos per dollar on Friday. Compared to Thursday's close of 18.8623 pesos, according to official data from the Bank of Mexico (Banxico), the exchange rate showed a slight gain of 0.05%, down 1 cent, marking five days of appreciation.

In a weekly comparison, the national currency appreciated 1.65%, its best result since the week ending April 25, when it appreciated 2.20%.

On a monthly basis, the peso is on track for a 2.80% appreciation, marking its sixth consecutive month of gains against the dollar.

The Intercontinental Exchange's Dollar Index (DXY), which compares the US currency with six benchmarks, fell 1.27% to 97.03 points in its weekly comparison.

Among the broad basket of major crosses, the most appreciated currencies this week were the Israeli shekel (2.73%), the Hungarian forint (2.54%), the Swiss franc (2.27%), the Polish zloty (2.24%), the Czech koruna (2.00%), and the pound sterling (1.96%).

The euro closed the week with a 1.67% gain, trading at $1.1716 per euro. The only currencies that depreciated during the week were the Argentine peso, down 2.06%, the Turkish lira, down 0.53%, the Russian ruble, down 0.19%, and the Colombian peso, down 0.07%.

"With this, the Mexican currency reaches levels not seen since August 2024, supported mainly by the prolonged weakness of the dollar, which continues to lose traction in global markets, and the recent 50 basis point cut in the interest rate by the Bank of Mexico, which left it at 8%," said Felipe Mendoza, Financial Markets Analyst at ATFX LATAM.

He added that the Mexican peso closed the week stronger, in an environment where local stability and expectations of disinflation continue to attract capital, although volatility could increase if the international environment recovers following the inflation surprises in the United States and the evolution of global monetary policy.

Peso bets fall for the third consecutive week

For the third consecutive week, speculators reduced their positions in favor of the Mexican peso on the Chicago Mercantile Exchange (CME).

In the week between Wednesday, June 18 and Tuesday, June 24, net speculative positions awaiting peso appreciation decreased by 11.57%, or 6,716 contracts, to 51,311 contracts.

This marks three consecutive weeks of decline, accumulating a decrease of 20.39% or 13,138 contracts.

This reflects that at exchange rate levels below 19.00 pesos per dollar, the attractiveness of maintaining speculative positions in favor of the peso is diminishing.