Mexican Peso Reverses: Dollar Opens at 18.75 After Fed Hold

The U.S. dollar opened trading at an average of 18.75 Mexican pesos on Thursday, October 29. This represented a 0.62% increase from the previous closing rate of 18.64 pesos, according to Dow Jones data. The currency recovered ground early in the trading session as markets adjusted to recent economic signals.

Over the past week, the dollar has accumulated a gain of 0.22%. Its year-over-year variation shows an increase of 2.18%. Market volatility currently sits at 6.73%, which is below the 8.05% reference level. Analysts note this suggests relatively moderate fluctuations compared to usual market conditions.

The recent shift in exchange rates follows a decision by the U.S. Federal Reserve to keep its interest rates unchanged. That move initially helped the peso strengthen on Wednesday. However, experts caution that the Mexican currency remains exposed to movements driven by external factors.

On Wednesday, the peso advanced 0.24% and traded near 18.6238 units per dollar close to the end of the day. This rise was driven by a global weakening of the U.S. dollar. Thursday's trading indicates that the peso's recovery did not persist across consecutive trading days.

The Bank of Mexico (Banxico) reported that the exchange rate closed Wednesday at 18.6261 pesos per dollar, based on the average of bank transactions. In the foreign exchange market, the U.S. dollar finished October 28 near 18.64 pesos per unit.

For Thursday, Banxico set the FIX exchange rate at 18.6673 pesos per dollar. This official rate is published in the Official Gazette of the Federation. It is used for specific financial operations and obligations but does not always match the prices banks offer customers. The rate applicable to paying dollar-denominated obligations was set at 18.6525 pesos per dollar.

Bank quotes for Thursday show variation among institutions. The average reported purchase price is 18.3808 pesos per dollar, while the average sale price is 18.8019 pesos. Scotiabank offered the highest purchase rate at 18.10 pesos. BBVA Mexico offered the lowest sale rate at 18.92 pesos.

Other institutions include Banamex, which buys at 18.02 pesos and sells at 19.11 pesos. Banorte buys at 17.35 pesos and sells at 19.00 pesos. Banco Azteca and Afirme both buy at 17.60 pesos, with Afirme selling at 19.20 pesos and Banco Azteca at 19.04 pesos.

Mexican workers sending money from the U.S. face different rates at international transfer companies. Western Union reported a rate of 18.23 pesos per dollar on Thursday. MoneyGram quoted 19.05 pesos per dollar, and Wise quoted 18.58 pesos per dollar. The final amount received by families depends on fees and the specific exchange rate applied by each service.