The peso closed August with a depreciation of 5.74 percent compared to the close of the previous month, according to data from the Bank of Mexico (Banxico).
At the end of the day, the exchange rate stood at 19.70 pesos per dollar, which represented a gain for the national currency against its US counterpart of 0.66 percent compared to the previous day, or 13 cents.
Despite this rise at the end of the week, the national currency has had three consecutive months of depreciation, pressured on this occasion by market nervousness in the face of the progress of the reform of the Judicial Branch in the Chamber of Deputies.
For various analysts, the peso will continue to depreciate against the dollar in the coming days, given the change of legislature next Sunday and the eventual approval of reforms promoted by the Executive, such as that of the Judiciary and that which extinguishes autonomous organizations.
➡️ Join El Sol de México’s WhatsApp channel to not miss the most important information
“The exchange rate was already trading very close to 20 pesos per dollar last Thursday, so it would not be surprising if that level were broken in the coming days, especially in a scenario of fast-track approval of the reforms,” said Erick Martínez, currency strategist at Barclays.