Mexican peso loses ground following a weak US jobs report

The Mexican peso depreciated connected Friday greeting to commercialized astatine adjacent to 19 to the US dollar, a weakening of much than 2% compared to its presumption a week ago.

After closing astatine 18.87 to the dollar connected Thursday, the peso fell to arsenic debased arsenic 18.98 to the greenback aboriginal Friday.

At 11:15 a.m. Mexico City time, the USD:MXN speech complaint was 18.94, according to Bloomberg.

The depreciation of the peso successful aboriginal trading connected Friday came aft the work of weaker-than-expected employment information successful the United States.

Data showing that non-farm payrolls successful the U.S. accrued by 73,000 jobs successful July — good beneath the 110,000 jobs economists polled by Reuters had predicted — raised expectations that the United States Federal Reserve volition chopped its national funds complaint successful September.

In Mexico, the Bank of Mexico published information connected Friday that showed that incoming remittances declined 16.2% annually successful June to US $5.2 billion.

At 18.94 to the dollar astatine 11:15 a.m., the peso was astir 2.2% weaker than its closing presumption connected July 23, a time connected which Mexico’s currency reached 18.53 to the greenback, its strongest presumption of 2025.

The 18.98 complaint to which the peso depreciated aboriginal Friday represented a 2.3% depreciation for the currency compared to its closing presumption of 18.54 to the dollar past Friday.

As the peso mislaid crushed against the dollar aboriginal Friday, the greenback depreciated against a handbasket of six large overseas currencies, arsenic shown successful a diminution of the U.S. Dollar Index.

A atrocious week for the peso 

The peso depreciated connected Monday to adjacent astatine 18.76 to the dollar earlier appreciating somewhat connected Tuesday to extremity the time astatine 18.75, according to the Bank of Mexico.

On Wednesday, the peso declined to 18.85 to the greenback. It fell again connected Thursday to adjacent astatine 18.87.

The depreciation connected Thursday and Friday greeting occurred contempt President Claudia Sheinbaum reaching a woody with U.S. President Donald Trump connected Thursday that allowed Mexico to debar the implementation of a 30% tariff that was scheduled to instrumentality effect today.

Most US commercialized remains duty-free aft Mexico secures a 90-day hold connected Trump’s astir caller tariff threat

The peso depreciated successful July, ending a 6-month streak of gains 

The peso depreciated 0.6% successful July, according to Bank of Mexico data.

Its closing presumption astatine the extremity of the period — 18.87 — was 11 centavos supra the 18.76 USD:MXN complaint astatine the extremity of June.

The depreciation successful July came aft a six-month streak of gains for the peso.

Here are the Bank of Mexico closing USD:MXN rates for the last trading time of each period since December.

• December 31: 20.88
• January 31: 20.69 (peso appreciated 0.9% successful 1 month)
• February 28: 20.58 (peso appreciated 0.5%)
• March 31: 20.46 (peso appreciated 0.6%)
• April 30: 19.61 (peso appreciated 4.3%)
• May 30: 19.39 (peso appreciated 1.1%)
• June 30: 18.76 (peso appreciated 3.3%)
• July 31: 18.87 (peso depreciated 0.6%)

Even with the depreciation of the peso to supra 18.90 to the dollar connected Friday morning, Mexico’s currency has gained much than 10% against the greenback this year.

The peso, however, is importantly weaker than its strongest presumption of 2024, which was 16.30 to the greenback connected April 8 of past year.

With reports from El Financiero and Excélsior