The Mexican peso reaches the highest level in a week against the dollar

by worldysnews

Please try a new search

Published 20.06.2023 16:07

© Reuters.

By: Julio Sanchez Onofre – The Mexican peso continued its downward trend this week as the US dollar strengthened, pushing the exchange rate above 17.20 pesos.

At the close of Tuesday’s session, the exchange rate reached 17.21 pesos per dollar, marking a week-high and a depreciation of the national currency by approximately 0.78%.

It’s worth noting that the dollar reached a peak of 17.24 pesos during the day.

“The peso’s depreciation is attributed to a 0.14% strengthening of the US dollar, as indicated by the weighted index,” explained Gabriela Siller Pagaza, Director of Economic and Financial Analysis at Banco Base.

According to the analyst, three factors contributed to the recent rebound in the exchange rate, which last week brought the Mexican peso to its lowest levels in nearly eight years:

  1. The expectation of a 25 basis points interest rate hike by the Federal Reserve following the release of robust housing data in the United States.
  2. The anticipation of the Federal Reserve Chairman’s testimony before the United States Congress on June 21 and 22. During the previous monetary policy meeting on June 14, the Fed revised its interest rate forecast for 2023 from 5.1% to 5.6%.
  3. Increased risk aversion in financial markets, driven by concerns over China’s economic growth stagnation.

“It’s important to note that the Mexican peso was not the only currency to depreciate during the session. The most affected currencies in the major currency basket today were the Chilean peso with a 1.06% depreciation, the South African rand with 1.00%, the Australian dollar with 0.96%, the Russian ruble with 0.85%, the Mexican peso with 0.78%, and the Norwegian krone with 0.59%,” he added.

LAST CALL! Get 30 free days of InvestingPro using the code “LUISMINEGOCIOS”! Try it NOW!

This content is a search suggestion, asking the user to try a new search. It also includes information about the publication date and source of the content, as well as the author’s name. The mention of “Investin” suggests that the content may be related to investment or finance.

How has PAA impacted the world of finance and investments since this article from Investin was published in 2019?

Since the publication of the article from Investin in 2019, the use of PAA (Personalized Asset Allocation) in the world of finance and investments has continued to evolve and impact the industry in various ways. Here are some notable developments:

1. Enhanced Automation: PAA tools have become more advanced and widely adopted, leveraging artificial intelligence (AI) and machine learning techniques to automate the asset allocation process. This automation has led to increased efficiency and accuracy in portfolio management.

2. Customization and Personalization: PAA has allowed for greater customization and personalization of investment strategies. By considering an individual’s risk appetite, financial goals, time horizon, and other personal factors, PAA helps generate asset allocations tailored to the specific needs of each investor.

3. Improved Risk Management: PAA has contributed to improving risk management practices by incorporating risk metrics and simulations into the asset allocation process. This helps investors better understand and manage their risk exposure, leading to more robust investment decisions.

4. Democratization of Investment Advice: PAA has contributed to the democratization of investment advice by making sophisticated asset allocation techniques accessible to a wider range of investors. Through digital platforms and robo-advisory services, individuals can now easily access PAA tools and receive tailored investment recommendations at lower costs.

5. Behavioral Finance Integration: PAA has increasingly incorporated insights from behavioral finance, considering investor biases and psychological factors when constructing portfolios. This integration aims to address behavioral pitfalls and, ultimately, improve investment outcomes.

6. ESG Considerations: Environmental, Social, and Governance (ESG) factors have gained significant importance in investment decision-making. PAA has evolved to incorporate ESG considerations into asset allocation models, aligning with investors’ growing demand for responsible and sustainable investment strategies.

7. Real-time Monitoring and Adjustments: PAA tools now offer real-time monitoring of portfolios and provide automatic rebalancing when necessary. This dynamic adjustment enables investors to adapt to changing market conditions promptly.

8. Regulatory Frameworks: Regulators have recognized the potential benefits of PAA in improving investor outcomes. Governments and financial authorities have developed frameworks and guidelines to ensure the responsible use of PAA and protect investors.

Overall, PAA continues to shape the world of finance and investments, empowering individuals with personalized asset allocation strategies that consider their unique circumstances and preferences. The advancements discussed above demonstrate how PAA has enhanced investment management, risk mitigation, and accessibility for a wider range of investors.

You may also like


Ian June 21, 2023 - 3:17 am

“Great news for Mexico’s economy! The strengthening of the peso against the dollar is a positive sign and could benefit both domestic and international investors. Let’s hope this trend continues!”

Frederick June 21, 2023 - 3:17 am

“Great news for the Mexican economy! The Mexican peso’s surge against the dollar is a positive sign of strength and resilience. Let’s hope this trend continues in the coming weeks.”


Leave a Comment

Wrodlys News