2025.08.2816:54:39UTC+00Mexican Peso Steady

The Mexican peso stabilized around 18.65 per USD, remaining near the one-year peak of 18.537 observed on July 23rd. This steadiness is attributed to a softer dollar being counterbalanced by diminished domestic monetary inflows and a more gradual policy trajectory from the Banco de México. Remittances, which are a significant source of dollar liquidity, have decreased by approximately 5% year-to-date, thereby removing a structural advantage that previously bolstered the peso earlier in 2025. Concurrently, unemployment slightly increased to 2.8% in July from 2.7% in June, indicating a minor economic softening that cools consumer spending and limits potential for rapid monetary easing. The central bank has embarked on a cautious easing cycle, reducing the interest rate by 25 basis points to 7.75% and indicating a slow, data-driven approach, which diminishes the attractiveness of the interest rate differential for carry trade investors. On the international front, the dollar has experienced fluctuating pressures this week. The revision of the second quarter US GDP to approximately 3.3% and unexpectedly positive labor data exert upward influence, while prominent political developments in the United States cast uncertainties over the Federal Reserve's policy outlook, tempering the dollar's strength.