This was the behavior of the US dollar during the first minutes of the trading session.
After the stock market opened, the US dollar is trading today at an average of 19.40 Mexican pesos, representing a 0.25% change compared to the previous session, when it was at 19.35 pesos.
Over the past seven days, the US dollar has risen by 0.17% and has maintained an increase of 5.83% over the past year.
Regarding recent dates, it has accumulated three consecutive sessions of positive numbers. The volatility over the past week is significantly lower than the volatility shown by the figures over the past year, so its quotation has been less altered than usual in recent dates.
Peso Continues to Decline
According to the exchange rate analysis by financial group Monex, the Mexican peso continued to decline at the opening of the American session, positioning itself in eighth place among emerging market currencies with the largest losses against the dollar.
They explained that today the exchange rate shows an increase in volatility, reflected in an expanding triangle pattern, after evaluating the local inflation report and awaiting the FOMC minutes. The September inflation reading reinforced the narrative of more rate cuts by Banxico.
The “Super Peso,” Inflation, and GDP
Mexico’s economy has experienced a series of contrasts, which will continue according to the forecasts of the Bank of Mexico (Banxico) for 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 shattered the 2023 forecasts by breaking the 17 pesos per unit floor, which had not been seen in eight years.
On the other hand, inflation is expected to continue its downward trend, having reached its historical peak of 8.7% at the end of 2022. Banxico forecasts inflation of 4.02% in 2024; however, it is not expected to reach the ideal three percentage points soon.
This, however, contrasts with the GDP growth forecasts, as Banxico expects it to be 2.29% in 2024.
About the Mexican Peso
The Mexican peso is the legal tender of Mexico and was 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 in the world, as well as the most traded in Latin America and the third on the continent, only behind the US dollar and the Canadian dollar.
Currently, the abbreviation MXN is used to refer to the Mexican peso, but before 1993 the initials MXP were used.
The coins commonly used in Mexico are semicircular and have the national coat of arms on the reverse. One Mexican peso equals 100 cents. There are coins of 1, 5, 10, and 20 pesos; while banknotes come in denominations of 20, 50, 100, 200, 500, and 1,000 pesos.
Source: Infobae
