Mexican Peso Appreciates and BMV Advances as Dollar Weakens

The Mexican peso appreciated significantly on June 4, trading at 19.18 per dollar, while the Mexican Stock Exchange (BMV) broke a four-session losing streak, both driven by a widespread weakening of the U.S. dollar.

The financial day of June 4, 2025, was favorable for the Mexican peso and the Mexican Stock Exchange (BMV), which showed positive performance in the face of global economic uncertainty.

The Mexican peso appreciated, trading at 19.18 per dollar, representing a gain of 0.26%. This strength of the Mexican currency is primarily attributed to a generalized weakening of the US dollar. The dollar's decline was influenced by several key factors:

• US Employment Figures: Private sector employment data in the United States for May came in weaker than expected, with an increase of just 37,000 jobs, well below the market expectation of 110,000.
• US-China Trade Tensions: Continued trade tensions between the United States and China, exacerbated by Donald Trump's declaration that reaching a trade deal with Xi Jinping is "extremely difficult" and the imposition of higher US tariffs on steel and aluminum, also contributed to the dollar's weakness.

A mitigating factor for investor risk in Mexico was the positive gross fixed investment figures for March, which were in line with market expectations.

As for the Mexican Stock Exchange (BMV), it showed an advance, breaking a four-session losing streak. The leading index, S&P/BMV, rose 0.41% to 57,876.45 points. Shares of mining company Industrias Peñoles led the gains, up 3.03%, followed by stock market operator Grupo BMV, which added 1.75%. Wall Street also opened with slight gains, reacting to lower-than-expected US employment figures.

"The peso is being supported by a downward correction in the dollar and speculation about the progress of trade talks," Monex noted.