Overview
- The peso closed around 16.92 per dollar after finishing a fifth straight week of gains, a move traders linked to a softer U.S. dollar and renewed carry‑trade flows.
- Markets reacted to the U.S. Treasury's announcement to expand long‑term Treasury buybacks and Fed minutes that lowered expectations for faster rate hikes, which reduced demand for dollars and eased longer‑term yields.
- Banco de México's decision to keep its reference rate at 6.50% preserved a yield gap that makes Mexican assets attractive to foreign investors and helped sustain portfolio inflows into the peso.
- In Argentina the official mayorista sits near ARS 1,499 while financial (MEP/CCL) and informal blue rates trade higher near ARS 1,535–1,595 and ARS 1,550 respectively, and BCRA reserves reached about US$50.655 billion largely from valuation gains rather than large new purchases.
- Traders warn key technical supports near 16.8878 and 16.5590 would signal scope for a larger peso move if broken and note that Middle East tensions and rising oil prices could quickly reverse the dollar's weakness and raise volatility.