The Mexican currency has broken the psychological barrier of 18 units per dollar, which represents its best data in the last five years. Since 2018, the peso had not managed to drop to 17.97 units, a figure with which its price closed this Friday. The currency had a weekly appreciation of 2.53%, reaching a maximum of 18.06 and a minimum of 17.96, according to data from the Bank of Mexico. The weekly appreciation of the peso has been the largest since August 2022. The weakness of the dollar, the good expectations for investors due to the low risk of Latin American currencies and the muscle that the Mexican economy has shown —promoted by the good numbers of exports and the arrival of Tesla in Nuevo León—, have led the currency to appreciate 0.86% in the last section of the week.
Despite the promises of the Federal Reserve that it will raise interest rates at its next meeting, which will take place between March 21 and 22 —now it stands at 4.75%—, the US dollar has shown weakness against other currencies. On the other hand, the good indicators of the Chinese market have led investors to have a greater influx of risky investments in the markets, a favorable situation for currencies in Latin America, which currently maintain a low risk.
In the global panorama, the Mexican market has become attractive to investors due to the good performance of exports, the policy of the Bank of Mexico, which has raised its interest rates to 11% to try to stop inflation, and the arrival from Tesla to Nuevo León, which will invest 4,500 million dollars in the country. All are causes for optimism.
The peso woke up at 18.05 units per dollar. Later it has continued to maintain the downward trend, reaching a minimum of 17.96, until it has closed at 17.97.
The currency began the month with the good spirits of the operators given the record performance of remittances in January. During the week, the peso has known an advance of 2.33%. The figure shows a bigger rise when you take into account its rise so far this year: 7.88%, one of the most prized emerging market currencies this year.
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