Despite the Candlemas Day holiday, the Mexican peso gained ground against the dollar in electronic trading, appreciating by 0.32 percent. The exchange rate stood at 17.40 units per dollar, two cents lower than the Bank of Mexico's close from the previous Friday. Analysts warn of a potential correction due to the peso's overbought status in January.
Mexico's financial markets remained closed on Monday, February 2, for Candlemas Day, commemorating the promulgation of the Constitution. However, the peso continued trading on electronic platforms and recorded a modest gain against the US dollar.
According to Bloomberg data, the Mexican currency appreciated by 0.32 percent, reaching an exchange rate of 17.40 pesos per dollar. This marks a decline of two cents from the Bank of Mexico's close on January 30.
Gabriela Siller, director of economic analysis at Banco Base, noted that the current exchange rate level signals a marked overbought condition for the peso in January, increasing the likelihood of an upward correction. 'Downward, key supports are observed at 17.10 units, the year's minimum level. Upward, key resistances are at 17.32, 17.46, and 17.57 pesos per dollar,' Siller explained.
The second half of January was tough for the dollar, though the greenback shows signs of recovery. Factors such as US threats toward Greenland and President Donald Trump's stance on the dollar's weakness have fueled debates about its long-term decline.
In banks, Banamex quoted the dollar at 17.89 pesos for selling and 16.89 pesos for buying. In the bond market, the US 10-year bond yield stood at 4.24 percent, while Mexico's remained at 8.92 percent.
Other notably appreciating currencies include the South Korean won (0.74 percent), Polish zloty (0.73 percent), Russian ruble (0.62 percent), Romanian lei (0.53 percent), and Czech koruna (0.50 percent).
