The Mexican peso showed a pattern of appreciation against the U.S. dollar at the start of August 2025, with gains noted on August 4 and 5 as it traded around 18.80 to 18.94 pesos per dollar. This appreciation was influenced by a general weakening of the dollar, the presentation of a strategic plan for Pemex by the Sheinbaum government, and market expectations of interest rate cuts by Banco de México (Banxico). The peso reached a low exchange rate of approximately 18.73 pesos per dollar on August 5, reflecting a gain of nearly 17 cents compared to the previous close. However, on August 7, the peso depreciated slightly to around 18.66-18.67 pesos per dollar following the release of inflation data in Mexico and amid continued dollar strength. Despite the peso's fluctuations, the Mexican Stock Exchange (Bolsa Mexicana de Valores) showed gains during this period. Market participants remained attentive to upcoming Banxico monetary policy decisions and local inflation data, which were key factors influencing the peso's performance.