Dollar rebounds to 18.75 pesos as Mexican currency loses early ground

The US dollar opened at an average of 18.75 Mexican pesos on Thursday, October 29, marking a 0.62% increase from the previous close of 18.64 pesos. According to Dow Jones data, the greenback recovered value at the start of the trading session, halting a short-lived strengthening of the peso that had occurred after the Federal Reserve’s latest monetary policy decision.

The Federal Reserve decided to leave its interest rate unchanged, a move that initially supported the Mexican peso on Wednesday. On that day, the peso appreciated by 0.24%, trading at 18.6238 units per dollar near the close. However, the shift on Thursday indicates that the currency’s recovery was not sustained across market sessions, leaving the peso exposed to external economic factors.

Bank of Mexico officials reported that the official closing rate for Wednesday was 18.6261 pesos per dollar, based on the average of bank transactions. The foreign exchange market ended the session on October 28 near 18.64 pesos per unit. For Thursday’s trading, the official FIX rate established by Bank of Mexico and published in the Official Gazette of the Federation stood at 18.6673 pesos per dollar. This specific reference is used for certain financial operations and obligations and may differ from the rates offered to retail customers.

Retail exchange rates varied significantly among major financial institutions on Thursday. The average price for buying dollars was 18.3808 pesos, while the average selling price reached 18.8019 pesos. BBVA Mexico offered the lowest selling price at 18.92 pesos, making it the most economical option for customers purchasing dollars. Conversely, Scotiabank provided the highest buying rate at 18.10 pesos, benefiting those selling their US currency to the bank. Other institutions, including Afirme, Banco Azteca, Banamex, and Banorte, offered rates between 17.35 and 19.30 pesos depending on the direction of the transaction.

Money transfer services presented different exchange rates for those sending funds from the United States to Mexico. Western Union quoted a rate of 18.23 pesos per dollar, while MoneyGram offered 19.05 pesos. Wise set its rate at 18.58 pesos per dollar. These figures do not account for service fees, which can reduce the final amount received by beneficiaries in Mexico.