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Mexican Peso Hits 18-Month High as Dollar Weakens

Dollar softness linked to questions over Federal Reserve independence is lifting the currency.

Overview

  • Banco de México reported a close at 17.8136 per dollar, the strongest level in roughly 18 months after a third straight gain totaling about 0.94%.
  • The U.S. Dollar Index hovered near 99.07 after slipping about 0.12% as markets digested retail sales up 0.6% in November and producer prices up 0.2%.
  • Concern over the Federal Reserve’s autonomy under pressure from the Trump administration weighed on the greenback and supported the peso.
  • The exchange rate briefly traded below the 17.80 support, and a sustained break could target around 17.50, according to México financiero’s Juan Carlos Cruz.
  • Analysts highlight upcoming Mexican inflation and U.S. employment data as potential drivers of near-term volatility.