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Mexican Peso Slides for Fourth Day, Trading in the Mid‑18.50s Per Dollar

Traders point to fading prospects for near‑term Federal Reserve rate cuts after comments by central bank officials.

Overview

  • The official DOF opening rate for October 31 was set at 18.5380 pesos per U.S. dollar.
  • Spot and interbank quotes hovered near 18.57–18.58, marking a fourth consecutive daily drop and leaving the peso down about 0.7% on the week and roughly 1.4% for October.
  • Market moves tracked a modestly stronger dollar index as remarks from Jerome Powell and Dallas Fed president Lorie Logan lowered odds of a December rate cut.
  • Preliminary data showed Mexico’s GDP contracted 0.3% quarter‑over‑quarter in Q3 and 0.2% year‑over‑year, adding domestic pressure on the currency.
  • Retail bank windows showed wide spreads, with examples including Afirme at 17.70/19.10 pesos and Banco Azteca at 16.95/19.04.