Jan 08, 2025 (MENAFN via COMTEX) --
(MENAFN - The Rio Times) The Mexican peso made modest gains on Tuesday, recovering from early losses as markets digested new data showing strength in the U.S. economy. According to Banco de MeÌxico, the peso closed at 20.2952 per dollar, up 0.07% from Monday's close of 20.3096.
The currency traded in a range between 20.3969 and 20.2634 pesos per dollar throughout the day. Meanwhile, the Dollar Index, which measures the greenback against six major currencies, rose 0.36% to 108.63 points.
Fresh economic data from the U.S. influenced market sentiment. The services sector activity accelerated in December, surpassing analysts' expectations. Additionally, the JOLTS job openings survey revealed an unexpected increase in November.
The peso's erratic behavior followed a day of strong gains. Optimism had surged due to a Washington Post article speculating that Donald Trump 's tariff campaign would focus only on critical imports.
However, Trump himself rejected this information on his Truth Social network, reigniting concerns about complex trade scenarios for Mexico. Intercam Casa de Bolsa noted, "Technically, we see the Mexican peso entering short-term oversold territory.
The first support level is at 20.20, extending to 20.10, while the first resistance level is at 20.45". The peso's performance reflects ongoing economic uncertainties and geopolitical tensions.
As markets continue to react to U.S. economic indicators and political developments, the Mexican currency remains sensitive to external factors.
Investors and analysts will closely monitor future trends in U.S.-Mexico relations and their potential impact on trade and currency markets.
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COMTEX_461667328/2604/2025-01-08T07:09:04
