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Mexico’s Peso Hits Strongest Since July 2024 After Five-Day Rally as Argentina Builds Reserves

Carry-trade yields plus policy signals are shaping currency moves across both markets.

Overview

  • The peso closed at 17.6499 per dollar, up 0.92% on the day for a fifth straight gain and its best level since July 16, 2024, according to Banxico.
  • Analysts cite demand tied to expected T-MEC review talks, attractive rate differentials, and reassurance on electoral autonomy as supports for Mexican assets.
  • The US Dollar Index hovered near 99 as softer jobless claims and comments from Fed officials reinforced expectations for policy rates to stay on hold.
  • In Argentina, the official Banco Nación rate was about ARS 1,470 for sale, with the blue near ARS 1,505, the MEP around ARS 1,472 and the CCL near ARS 1,516.
  • The BCRA has resumed net FX purchases totaling more than USD 520 million year to date, including a USD 187 million buy midweek, lifting gross reserves to roughly USD 44.7 billion and drawing praise from the IMF’s spokesperson.