Exchange Rate in Mexico
Mexico - Exchange Rate
Peso recovers from Trump-induced tumble
The Mexican peso achieved the unthinkable in early June as it recovered all the ground lost against the U.S. dollar following President Donald Trump’s surprise victory in November. On 7 June, the peso strengthened to 18.23 per USD, the highest reading since mid-August and just above the peso’s level before the U.S. election on 9 November. The currency was 4.1% higher compared to the same day a month earlier and, on an annual basis, the peso gained 12.1% of its value against the greenback.
The value of the peso had plummeted to a record low in the aftermath of the election and continued to slide until Trump’s inauguration in mid-January, but unexpectedly steadily appreciated against the dollar thereafter.
The Mexican currency performed especially well at the start of June. The peso first rallied on 5 June after Mexico’s ruling party PRI forged ahead in the keystone election for governor of the state of Mexico. In so doing, the party cleared a relevant hurdle since polls had predicted a tight race against the main opposition party Morena. On 6 June, the peso got a further lift as expectations for a trade war faded following an agreement between Mexican and U.S. authorities to limit Mexican sugar imports into its northern neighbor. This is expected to set the tone for upcoming talks on the renegotiation of NAFTA.
However, there is reason to think June’s rally was overdone. Even if the economy is performing better than at first expected, several rounds of fiscal and monetary tightening are starting to be felt. Moreover, although the tone may have softened since Trump took office, uncertainty remains high regarding the U.S. administration’s stance on trade policy. Finally, the feeble economic backdrop ahead of next year’s presidential election could still weigh on PRI’s chances of emerging victorious, and a Morena victory would most likely cause the peso to tumble.
Analysts surveyed by FocusEconomics for this month’s LatinFocus report expect the Mexican peso to trade at 19.90 MXN per USD at the end of 2017. For 2018, panelists expect the peso to remain virtually unchanged and close the year at 19.74 MXN per USD.
Mexico - Exchange Rate Data
|Exchange Rate (vs USD)||13.04||14.75||17.18||20.73||19.65|
5 years of economic forecasts for more than 30 economic indicators.
Mexico Exchange Rate Chart
Source: Thomson Reuters.
|Bond Yield||6.95||-0.24 %||Sep 04|
|Exchange Rate||19.72||-0.29 %||Sep 04|
|Stock Market||42,324||0.12 %||Sep 04|
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September 9, 2019
Consumer prices slipped 0.02% from a month earlier in August, following the 0.38% month-on-month increase in July.
September 6, 2019
Consumer confidence bounced back in August after five consecutive months of decline, with the seasonally-adjusted consumer confidence index published by the Statistical Institute (INEGI) coming in at 43.4 points, up slightly from 43.1 points in July.
September 2, 2019
Remittances totaled USD 3.3 billion in July (June: USD 3.2 billion), a 14.4% jump from the same month a year ago (June: +1.4% year-on-year).
August 27, 2019
Exports increased a firm 7.0% year-on-year in July, well above June’s 1.2% expansion and the strongest reading in nine months.
August 23, 2019
The monthly indicator for economic activity (IGAE, Indicador Global de la Actividad Económica) advanced 0.2% in seasonally-adjusted, month-on-month terms in June, following May’s flat reading.