Overview
- The Mexican peso recovered last Friday after Banco de México cut its policy rate by 25 basis points to 6.25%, producing a small weekly appreciation and ending an eight-week slide.
- Traders pushed up the dollar after U.S. payrolls surprised to the upside with about 165,000 jobs and a 4.1% unemployment rate, which lifted market odds of a Fed rate increase in December and supports dollar strength.
- Analysts warn the peso’s bounce may be temporary because the rate gap with the United States has narrowed, reducing carry returns and leaving the currency vulnerable to further dollar gains.
- Argentina’s foreign-exchange market remains deeply segmented with wide spreads between official and parallel rates: weekend quotes showed blue around 1,535/1,555, MEP near 1,560.20/1,587.90, CCL near 1,658.40/1,664.90 and the taxed tarjeta at about 2,041.
- Peru’s interbank reference closed at about 3.4250 soles per U.S. dollar on Nov. 6, giving a regional snapshot that policymakers and businesses will watch as U.S. policy bets and local central-bank moves steer short-term currency pressure.