Mexican peso gains 0.71% to 18.16 per dollar on weak US jobs

The Mexican peso appreciated 0.71% against the dollar on Friday, October 2, halting a four-session losing streak. According to Banco de México data, the exchange rate settled at 18.16 pesos per dollar, down 13 centavos from Thursday, October 1. Over the entire week, the currency fell 2.58%, representing a loss of 46 centavos.

The rebound followed US employment data for September, where payroll growth reached only 29,000 positions. That print came in below every estimate from economists polled by Bloomberg, accompanied by slowing wage growth amid rising business costs. Banamex reported a retail dollar selling rate of 18.65 pesos and a purchase rate of 17.63 pesos.

Gabriela Siller, director of economic analysis at Banco Base, explained that the US jobs report allows the market to speculate that the Federal Reserve could be more cautious about continuing to raise interest rates.

In sovereign debt markets, the US 10-year Treasury yield stood at 5.23%, while Mexico's 10-year bond yield traded at 9.54%. Other currencies also gained against the dollar on Friday, led by the South Korean won up 1.01%, the Israeli shekel rising 0.85%, the Russian ruble advancing 0.63%, the Australian dollar climbing 0.46%, and the Swiss franc gaining 0.44%.