The Mexican peso depreciated against the dollar on Thursday, retreating in a session marked by volatility. The decline followed data showing that the number of Americans filing for unemployment benefits dropped last week to its lowest level in a month.

The exchange rate closed the session at 20.2083 pesos per dollar, based on the official data from the Bank of Mexico (Banxico). Compared to a reference price of 20.1490 pesos yesterday (as reported by LSEG, with no official figure due to the holiday), the peso lost 5.93 cents, or 0.29%.

During the session, the dollar traded within a range of 20.1318 pesos at its lowest and 20.2330 pesos at its highest. Meanwhile, the U.S. Dollar Index (DXY), which measures the greenback against a basket of six major currencies, slipped 0.07% to 108.12 points.

USD/MXN

Initial unemployment claims in the U.S. fell by 1,000 last week, reaching 219,000, according to a weekly report from the U.S. Department of Labor. Economists surveyed by Reuters had anticipated claims to come in at 224,000.

Investors remain focused on potential indicators for the interest rate trajectory in Mexico and the United States for the coming year. This follows December rate cuts announced by both the U.S. Federal Reserve (Fed) and Banxico.

Mexico Stock Exchanges

Meanwhile, Mexico’s stock markets recorded moderate gains this Thursday. Local indices rose after two consecutive sessions of declines and following the Christmas holiday, with trading volumes lower as the year-end approaches.

The benchmark S&P/BMV IPC index, which tracks the most traded stocks on the Mexican Stock Exchange (BMV), climbed 0.44%, closing at 49,535.58 points. Meanwhile, the FTSE BIVA index, representing the Institutional Stock Exchange (Biva), gained 0.41% to reach 1,005.58 points.

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.