MEXICO CITY.- The Mexican peso in international markets extends last week’s gains, reaching the 16.31 pesos per dollar wholesale, its lowest intraday level since August 2015 when it was offered at a low of 16.24, according to Bloomberg information.
Why does the peso appreciate against the dollar?
The appreciation of the peso continues due to
1) The foreign exchange flows that arrive to the country through exports, remittances and foreign investment 2) The wide differential between the interest rates of Mexico and the United States
3) The expectation that Mexico will benefit from the nearshoring opportunity, explained Gabriela Siller, director of economic analysis at the Base financial group.
The appreciation of the peso occurs despite speculation that the Federal Reserve will be more cautious to begin cutting the interest rate, making the first cut until September 18, the specialist added.
It is worth remembering that last week several Federal Reserve officials showed a restrictive tone.
In the money market, the rate of 10-year Treasury notes shows an increase of 4.4 basis points, standing at 4.45% and touching a maximum of 4.46%, not seen since November 27, 2023.
Price of the dollar in Mexico
Until 11:00 a.m. this Mondaythe Mexican currency was sold at 16.33 pesos per wholesale dollar, which meant an appreciation of 0.70% or 12 cents, compared to the previous day.
What you encounter among the four most appreciated currencies against the greenback globally, only surpassed by the Israeli shekel with a gain of 2.15%, the Swedish crown with 0.85% and the South African rand with 0.72%.
The retail dollar opens this Monday in 16.77 pesos at the windows of the banks, 0.47% or 8 cents above last Friday’s close, according to data published by CitiBanamex.
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2024-05-03 11:26:36