The US dollar has surged against the Mexican peso following the release of strong US employment data for January. At 08:00 hours Mexico City time, the exchange rate stood at 17.15 units, as the peso depreciated by 0.45%. This comes after a strong advance earlier in the overnight session. The peso is set to conclude the session with a weekly gain of 0.11% against the US dollar, breaking a two-week losing streak.
The US labor market showed the creation of 353,000 jobs in January, well above analysts’ expectations of 187,000. This data further cools expectations about a rate cut by the US Federal Reserve at its next meeting, especially after Fed President Jerome Powell ruled out lowering rates as early as March.
In local matters, the Ministry of Finance and Public Credit reported that rating agency S&P maintained the rating of Mexican long-term debt in foreign currency at BBB, two levels above investment grade. This demonstrates confidence in Mexico’s fiscal and monetary prudence, despite it being an election year.
The strengthening dollar and robust US employment data have impacted the exchange rate, as the peso faces depreciation in the wake of these developments. Stay informed with InvestingPro and attend our free webinar to receive a surprise gift.