The Mexican Peso Shows Strength Against the Weakening US Dollar
After the continuous weakening of the US dollar, the Mexican peso remains strong, reaching its highest level since December 2015. The peso closed with a slight appreciation compared to the previous day, as reported by the Bank of Mexico (Banxico). The exchange rate ended at 17.1163 pesos per greenback, marking a marginal increase of 0.04 percent or 0.64 cents from its previous closing. Throughout the day, the peso fluctuated within a range of 17.2537 to 17.1031 units per dollar.
Expert Analysis on the Current Exchange Rate Trend
Gabriela Siller, the director of economic analysis at Banco Base, suggests that despite the recent correction, the exchange rate’s upward trend might not signify a long-term change. According to Siller, the increase in demand for advance purchases of dollars and exchange hedges has contributed to the peso’s current strength.
The Dollar Index (DXY), which measures the US currency’s strength against a basket of six developed countries’ currencies, has dropped by 0.78 percent, standing at 102.14 units. Similarly, the Bloomberg Dollar Index (BBDXY) shows a decline of 0.69 percent, reaching 1,220.53 points.
Current Exchange Rates at Banks
At bank windows, the Mexican peso is quoted at 17.56 pesos per US dollar, as reported by Citibanamex.
In the money market, the yield for the 10-year Mbono in Mexico currently stands at 9.14 percent. In comparison, the yield for the 10-year bond in the United States is at a level of 3.70 percent.
Currencies That Strengthened Against the Dollar
Among emerging economies, the following currencies experienced the most significant appreciation against the US dollar:
- Bulgarian Lev: 1.10 percent
- Polish Zloty: 1.10 percent
- Czech Crown: 1.07 percent
- Romanian Lei: 0.95 percent
- Chilean Peso: 0.88 percent
- South African Rand: 0.72 percent
To learn more about the current exchange rate situation, you can watch the video below: