The Mexican peso ended the session up 0.15% against the dollar at 17.76 pesos per unit, per Banco de México data. Traders assessed the feasibility of a ceasefire in Iran ahead of Banxico's monetary policy decision on Thursday. Analysts forecast the currency to hold in a 17.65-17.85 pesos per dollar range.
The Mexican peso posted gains at the March 25 session close, appreciating 0.15% or 2.63 centavos to 17.76 pesos per dollar, according to Banco de México (Banxico) figures. Traders weighed U.S. negotiations for an end to the war in Iran while awaiting the central bank's monetary policy decision the next day. In bank windows like Banamex, the dollar traded at 18.20 pesos per greenback. The dollar index (DXY) rose 0.20% to 99.64 points, and Bloomberg's (BBDXY) gained 0.16% to 1,211.27 units. Ten-year bond yields stood at 4.33% for the U.S. and 9.45% for Mexico. Felipe Mendoza, markets analyst at EBC Financial Group, stated: “For the coming days, I expect the Mexican peso to hold in a 17.65 to 17.85 range. The ceiling will be capped by weak January growth data, while support comes from Middle East geopolitical de-escalation. If ceasefire details firm up, the peso could test 17.60.” Among emerging currencies, the Czech koruna and Polish zloty fell up to 0.54%.
