On Thursday, May 8, 2025, the US dollar is trading at an average of 19.57 Mexican pesos, reflecting a slight appreciation of the peso against the dollar. This comes after the Federal Reserve decided to maintain its interest rate in the range of 5.25% to 5.50%, alleviating concerns over a tighter monetary policy in the United States.
The dollar's value fluctuated throughout the day, starting at 19.60 pesos on the previous day, marking a 0.31% increase compared to the reference price on Tuesday. Analysts noted that the peso is showing a stable performance, with support levels identified between 19.75 and 19.20 pesos per dollar.
According to data from Banco de México, the dollar is currently priced at 19.60 pesos, with various banks offering different rates. For instance, Citibanamex is buying dollars at 18.96 pesos and selling them at 20.12 pesos, while Banco Azteca's rates are 18.70 pesos for buying and 20.05 pesos for selling.
In the international money transfer sector, the dollar is trading at 19.21 pesos in Western Union and 19.66 pesos in MoneyGram. This variability reflects the ongoing adjustments in the foreign exchange market as investors assess economic indicators.
Despite fluctuations, the Mexican peso has shown resilience over the past year, maintaining a strong position against the dollar compared to other global currencies. Following the election of President Claudia Sheinbaum, the dollar has surpassed the 20 pesos mark, a notable shift from previous trends.
In recent weeks, the peso has appreciated by 0.21% compared to the previous day's price, buoyed by investor optimism regarding trade relations and the recent inflation report from Mexico. The inflation rate for April was recorded at 3.93% annually, slightly above expectations but still within the target range set by Banco de México.
In a statement, Monex brokerage highlighted that the peso's appreciation is driven by the dollar's downward correction and the inflation report, which suggests that the central bank might consider further cuts to its reference interest rate in the upcoming meeting.
Looking back at the previous year, the peso started strong against the dollar, reaching a low of 16 pesos per dollar—a level not seen in nearly a decade. However, as the year progressed, the currency faced depreciation due to various political decisions, including controversial judicial reforms and the elimination of autonomous bodies.
Furthermore, the rise of Donald Trump as President of the United States and his threats to impose tariffs on Mexican goods significantly impacted the peso's value, driving it back above the 20 pesos mark.
As for the economic outlook, Banco de México has projected that the dollar will trade between 20.24 pesos and 20.69 pesos in 2025. This forecast is considered conservative, given the potential repercussions of Trump's policies.
In terms of inflation, the central bank expects rates to remain below 4%, estimating a figure of 3.8% for 2025. The GDP growth forecast remains modest, with an anticipated increase of just 1.2% for the year.
The peso, which is the legal tender of Mexico, is notable for being the first currency in the world to adopt the dollar sign ($), a symbol later adopted by the United States. It is the fifteenth most traded currency globally and the most traded in Latin America.
As of May 8, 2025, the following rates were recorded across various banks:
- BBVA México: 18.68 pesos buying, 19.81 pesos selling
- Citibanamex: 18.90 pesos buying, 20.06 pesos selling
- Banco Azteca: 18.70 pesos buying, 20.05 pesos selling
- Banorte: 18.35 pesos buying, 19.85 pesos selling
- Banca Afirme: 18.60 pesos buying, 20.20 pesos selling
- Scotiabank: 17.00 pesos buying, 22.00 pesos selling
- Inbursa: 19.20 pesos buying, 20.20 pesos selling
As the day progresses, the exchange rates are likely to continue fluctuating, reflecting ongoing market dynamics. Investors and consumers alike are advised to stay informed about the latest trends in the foreign exchange market, especially as economic indicators are released and geopolitical events unfold.
Overall, the Mexican peso's performance against the dollar on this day reflects broader economic trends, investor sentiment, and the impact of monetary policy decisions from both sides of the border. With the upcoming decisions from Banco de México and the Federal Reserve, the currency markets will be closely watched for any significant shifts.
