The Mexican peso traded in a narrow range against the US dollar on Tuesday, closing virtually unchanged as foreign exchange markets entered a period of consolidation ahead of a pivotal policy announcement.
Traders largely stood aside, reducing volatility in the pair while positioning for the Federal Reserve's interest rate decision scheduled for Wednesday.
The lack of directional momentum reflects a cautious stance among market participants.
With the Fed's monetary policy meeting imminent, liquidity has thinned, and speculative flows have dried up.
The pair remained anchored below the 18.00 level, a technical threshold that has defined recent trading ranges.
This pause follows a week of mixed signals for the greenback.