Opening quote today, August 1st in Mexico: peso reports slight advance against the dollar

The Mexican peso rose slightly against the dollar, after the US currency was traded at 18.49 pesos on average in today’s opening session, which meant a 0.71% drop compared to the 18.62 pesos of the previous day.

According to the exchange analysis of the financial group Monex, the Mexican peso extended its advance prior to the opening, but is positioned in 2nd place among the currencies of emerging countries that show the greatest gains against the dollar, after the comments of Jerome Powell, member of the General Board of the Federal Reserve System after the FOMC decision and evaluating the contrast with the Banxico easing cycle.

If we consider the data from the last week, the US dollar registers an increase of 0.19%, so that in the last year it still maintains an increase of 10.42%.

Comparing this data with that of previous days, it adds two consecutive sessions of decline. The volatility of the last seven days is 10.38%, which is a figure lower than the annual volatility data (11.81%), so it is having a more stable behavior than normal in recent times.

The Mexican economy has experienced 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 be sold 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 by 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