US Dollar strengthens globally, pressuring Mexican peso and Euro

Mexican peso US dollar exchange rate PCE inflation monetary policy

Global currency markets are experiencing significant volatility as the US dollar strengthens against major currencies. In Mexico, the peso faced a difficult September, recording its largest monthly depreciation in over two years, losing approximately 6.38 percent of its value. This decline was driven by a narrowing interest rate differential between the Bank of Mexico and the US Federal Reserve, alongside a global strengthening of the dollar. While recent US PCE inflation data, which came in at 0.3 percent for August, provided some temporary relief by lowering expectations for immediate rate hikes, the peso remains under pressure, trading near 18 units per dollar.

In Europe, the euro has fallen below the 1.13 level against the dollar, reaching its lowest point in 17 months. This decline is attributed to rising US Treasury yields and energy price concerns within the eurozone. Meanwhile, in Peru, the dollar has climbed to 3.45 soles due to surging US bond yields and petroleum costs. In Costa Rica, the dollar also saw a recent uptick, closing at ¢460.45, marking a reversal from its September lows.

Entities

Banco de México · Bloomberg · Euro · Federal Reserve · Mexican peso · Mexico · Monex Financial Group · US dollar · United States Dollar

Claims

What the coverage asserts, and how many sources carry each claim.

[● 2 SOURCES] The Mexican peso appreciated by 0.38 percent against the US dollar during early Wednesday trading. siker.com.mx
[○ 1 SOURCE] The Mexican peso saw an approximate 6.2 percent increase in the exchange rate from September 1 to September 30.
[○ 1 SOURCE] The August PCE inflation increase was lower than the 0.4 percent expected by economists. siker.com.mx
[○ 1 SOURCE] US GDP grew at an annual rate of 2.5 percent in the second quarter.
[○ 1 SOURCE] The US Personal Consumption Expenditures (PCE) price index increased 0.3 percent monthly in August. siker.com.mx
[● 2 SOURCES] The exchange rate was 17.9948 pesos per dollar as of 7:12 AM on September 30. siker.com.mx
[○ 1 SOURCE] The US PCE inflation showed an annual increase of 3.4 percent at the end of August.
[○ 1 SOURCE] Morgan Stanley revised its fourth-quarter forecast for the peso to 18.25 per dollar. www.perfil.com
[● 2 SOURCES] The peso closed September with a monthly depreciation of approximately 6.38 percent. elceo.com · laopinion.com
[○ 1 SOURCE] The Mexican peso accumulated its fourth consecutive day of depreciation. www.expreso.com.mx
[○ 1 SOURCE] The US dollar opened October 1 at 18.15 Mexican pesos, a 0.48 percent increase. www.expreso.com.mx
[○ 1 SOURCE] The US Personal Consumption Expenditures (PCE) index increased 0.3 percent monthly in August, lower than the 0.4 percent expected. siker.com.mx