The Mexican peso closed the session this Wednesday with an appreciation of 0.29%, trading at a price of 17 units per dollar, and headed towards 16.74 units, in addition to registering a minimum not seen since December 2015.
The Mexican currency closed the session with an appreciation of 0.29% or 4.66 cents, trading around 17 pesos per dollar, with the exchange rate reaching a maximum of 17.07 and a minimum of 16.98 pesos per dollar, not seen since December 2015 when the exchange rate reached 16.95 pesos per dollar.
“Since July of last year, the exchange rate in Mexico has shown a behavior of two consecutive months of appreciation in which it gains around 7%, followed by a rebound in which the exchange rate rises 4%,” explained Gabriela Siller. , Director of Economic and Financial Analysis at Banco Base.
“If the peso continues with this performance, the exchange rate could reach an approximate level of 16.74 pesos per dollar in July and then rebound and return to be above 17.2 pesos per dollar temporarily,” he added.
He pointed out that the fundamental reasons for the appreciation of the peso are due “to the flows of dollars that arrive from exports, remittances and foreign direct investment, the restrictive monetary policy of the Bank of Mexico and the preference of foreigners to invest in pesos.”
In addition, he recalled that at the beginning of the administration of President Andrés Manuel López Obrador, on December 1, 2018, “it was feared that the Bank of Mexico would lose its autonomy and that Mexico’s sovereign debt would lose its investment grade, risks that are not materialized and that added to the golden opportunity of ‘nearshoring’ give Mexico a good economic perspective”.
The exchange rate is the price of a country’s currency when quoted in another country. This indicates how many units of a currency are equal to one unit of another country’s currency. Visit the Tu Dinero section on Telemundo52.com to check the exchange rate every day.
The specialist pointed out that “despite the fact that the appreciation generates optimism among citizens, on balance it ends up affecting the Mexican economy, since it has been very fast and there is no way for exporters to adjust to the new low exchange rate.”
In addition, “remittance recipients are also suffering from the loss of purchasing power.”
During the session, the Mexican peso stood out as the most appreciated currency (0.29%), among the few currencies that gained ground this day, followed by the Israeli shekel (+0.28%), the South Korean won (+0, 21%), the Chilean peso (+0.21%), the Hong Kong dollar (+0.1%) and the Colombian peso (+0.06%).
While the most depreciated currencies were: the Hungarian forint (-1.92%), the Swedish krona (-1.04%), the Polish zloty (-0.97%), the Russian ruble (-0.86%) ) and the South African rand (-0.76%).
