Mexican Peso Rises After Biden Withdraws from Democratic Candidacy

The local currency advanced after experiencing its worst week since the June 2 elections, following President Joe Biden’s decision to withdraw from the candidacy to remain in the White House.

The Mexican peso regained ground against the dollar on Monday. The local currency advanced after its worst performance since the June 2 elections, following U.S. President Joe Biden’s withdrawal from the race to stay in the White House.

The exchange rate ended the day at 17.9408 units, compared to Friday’s close of 18.0825 pesos, according to the official data from the Bank of Mexico (Banxico). This movement represented an improvement of 14.17 cents, or 0.78 percent, for the currency.

The dollar price fluctuated within an open range, reaching a maximum of 18.1133 units and a minimum of 17.8878. The Dollar Index (DXY) from the Intercontinental Exchange, which measures the greenback against a basket of six currencies, fell by 0.06% to 104.33 units.

Analysts said Biden’s withdrawal from the presidential race raised hopes that the Democratic Party could perform better in the November elections against Republican rival Donald Trump, whose policies are viewed with market concern.

USD/MXN

Vice President Kamala Harris is the favorite to replace the 81-year-old Biden as the Democratic candidate. President Biden has expressed support for Harris’s potential nomination, and analysts believe she could perform better.

Joe Biden lost the backing of several key Democratic Party members, including former President Barack Obama, who urged him to step down due to his poor performance in a June debate, raising widespread concerns about his age.

The peso regained lost ground from the previous week, reaching 17.89. A major catalyst was Joe Biden’s withdrawal from the presidential race, which, although expected, weakened the dollar.