Opening price of the dollar in Mexico on July 9: peso gains ground after inflation report

The Mexican peso gained ground against the US dollar, after the US currency was trading at an average of 17.93 Mexican pesos in today’s opening session, which represented a change of 0.49% compared to the figure of the previous session, when it was quoted at 18.01 pesos.

According to the exchange analysis of the financial group Monex, at the opening of the American session, the Mexican peso extended the advance established earlier and was positioned in fourth place among the currencies of emerging countries that showed the greatest gains against the dollar.

It explained that the Mexican peso was favored by the inflation report of the National Institute of Statistics and Geography (INEGI), which showed that the currency rose for the fourth consecutive month, which will make it difficult for the Bank of Mexico (Banxico) to cut its reference interest rate, so that the differential with the United States rate could remain at 550 bp for longer.

In reference to the profitability of the last week, the US dollar registers a drop of 1.83%; on the other hand, in year-on-year terms it still accumulates a rise of 6.19%.

Compared to previous dates, it has chained two consecutive days in negative. In the last week, volatility presents a behavior noticeably lower than the volatility shown by the figures of the last year, therefore in this last phase it is tending to change less than normal.

The Mexican economy has suffered a series of contrasts, which will continue, according to the forecasts of the Bank of Mexico (Banxico) for this 2024.

Regarding the exchange rate, the central bank expects the dollar to trade throughout the year between 17.68 pesos and up to 18.67 pesos per unit. A conservative forecast considering that the national currency destroyed the forecasts for 2023 breaking the floor of 17 pesos per unit, which had not been seen for eight years.

Inflation, on the other hand, is expected to continue its downward trend, since it reached its historical maximum of 8.7% at the end of 2022. Banxico forecasts inflation of 4.02% in 2024, however, the ideal of three percentage points is not expected to be reached soon.

The above, however, contrasts with the growth forecasts of the Gross Domestic Product (GDP), since Banxico expects it to be 2.29% in 2024.

The Mexican peso is the legal tender of Mexico and is the first currency in the world to use the $ sign, which was later adopted by the United States for the dollar.

This currency is the fifteenth most traded currency in the world, as well as the most traded in Latin America and the third on a continent-wide level only behind the US and Canadian dollars.

Currently, the abbreviation MXN is used to refer to the Mexican peso, but before 1993 the initials MXP were used.

The coins that are normally used in Mexico are semicircular and have the national emblem on the back. One Mexican peso is equivalent to 100 cents. There are coins of 1, 5, 10 and 20 pesos; while there are bills of 20, 50, 100, 200, 500 and 1,000 pesos.

Source: infobae