Mexican Peso Closes Stronger Below 17 Per Dollar

The Mexican peso appreciated 0.17% against the US dollar to finish at 16.9705 units, according to data from Banco de México. The close marked the currency's eighth consecutive day trading below 17 per dollar. Over the session, the peso touched an intraday low of 16.96 and a high of 16.98. Despite Friday's advance, the currency posted a weekly drop of 0.47% compared to the prior Friday.

In bank branches, the US dollar was offered at 17.38 pesos at Banamex, 17.25 at Banorte, 17.45 at BBVA, and 16.97 at foreign exchange houses. The dollar index, which tracks the greenback against six major currencies, gained 0.10% to 99.15 points.

Grupo Financiero Monex noted that US inflation data served as the primary catalyst for foreign exchange movements. US annual consumer price inflation reached 3.4% in August, while core inflation stood at 2.4%. Felipe Mendoza, market analyst at EBC Financial Group, stated that money markets now place a 71.3% probability on the Federal Reserve raising interest rates by 25 basis points.

Support for the local currency came from Mexican industrial production, which expanded 2.7% year over year in July, beating market estimates of 1.8% according to the Instituto Nacional de Estadística y Geografía. Mendoza attributed the print to dynamic manufacturing and construction, while noting that future moves will track US bond yields and geopolitical tensions in the Middle East.