(MENAFN- The Rio Times) The Mexican peso is hovering near 18.42 per dollar this morning after a calm overnight session. That level keeps the currency in a tight 24-hour range and follows a 0.47% rise in Mexico's S&P/BMV IPC to 62,220 on Thursday.

The U.S. Dollar Index is steady in the upper-97s-off midweek lows after softer U.S. jobs data and government-shutdown jitters briefly knocked the greenback.

The simple story: risk appetite recovered and Mexico went along for the ride. The story behind it: a push-and-pull between a slightly weaker global dollar and Mexico's own shifting fundamentals.

Banxico has begun a cautious easing cycle, cutting the policy rate to 7.50% while still offering positive real yields that keep carry traders interested.

Countering that support, remittances have softened-August fell 8.3% year on year-blunting a key household cash flow that usually helps the peso.



On the equity tape, big liquid names did the heavy lifting. Winners included Cemex and América Móvil, while a handful of mid-caps drifted lower, leaving breadth positive but not euphoric.

U.S. investors are leaning back into the theme: the iShares MSCI Mexico ETF last traded near $66.90 with roughly two million shares changing hands this week, and five-day assets have risen-evidence that foreign flows are still a tailwind.



Technically, USD/MXN is trying to bounce on the 4-hour chart from this week's 18.26–18.30 floor; momentum gauges have turned mildly higher. But the daily chart still caps rallies below a heavy 18.46–18.55 resistance zone and longer down-sloping averages.

Until there's a daily close above that shelf, the base case is range-bound trading with support at 18.35 and then 18.26. For equities, the IPC 's broader uptrend remains intact; 61,200–61,600 is the support zone to watch, while 62,600–62,900 would signal another push toward highs.

Bottom line: Mexico's markets are balanced between a steadier global dollar and decent-if moderating-domestic fundamentals.

Today's U.S. data and any Banxico hints on the pace of cuts will likely decide whether the peso tests 18.50 or slides back toward the low-18.30s, and whether the IPC can build on Thursday's rebound.

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