Dec 17, 2024 (MENAFN via COMTEX) --
(MENAFN - The Rio Times) The Mexican peso weakened against the dollar on Monday morning. This decline reflects a broader global strengthening of the U.S. dollar, as traders exercise caution at the start of a week filled with significant monetary policy announcements.
Currently, the spot exchange rate stands at 20.1913 pesos per dollar. This marks a decrease from Friday's closing rate of 20.1281 pesos, resulting in a loss of 6.32 cents or 0.31 percent.
Throughout the day, the dollar fluctuated between a high of 20.2110 pesos and a low of 20.1065 pesos. The U.S. Dollar Index (DXY), which gauges the dollar 's performance against a basket of six major currencies, increased by 0.03 percent to reach 107.04.
This week is particularly noteworthy as several central banks will announce their final monetary policy decisions for the year. Among these, the U.S. Federal Reserve and Mexico's central bank, Banxico, are expected to make significant announcements on Wednesday and Thursday, respectively.
ING highlighted that this week is packed with events during the final full trading week of the year. The meetings of both the U.S. and Japanese central banks are particularly crucial, but many other monetary policy discussions are also on the agenda.
Banco Base emphasized the importance of this week for investors due to anticipated announcements from various central banks. They predict that during today's session, the exchange rate will likely trade between 20.11 and 20.26 pesos.
Market expectations suggest that both Banxico and the Federal Reserve may lower their benchmark interest rates by 25 basis points each. Consequently, much attention will focus on how these institutions communicate their future policy directions for the upcoming year.
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COMTEX_460946862/2604/2024-12-17T04:34:30
