Stealthy Pesos
Peso fundamental's and the lack of retail coverage, quiet mover.
The Mexican peso traded at 17 per USD in July, its strongest since November of 2015 as evidence of a resilient Mexican economy supported forecasts that the Bank of Mexico will remain hawkish for a prolonged period. Fresh PMI data showed that the country’s manufacturing sector expanded in June, the only country within the Americas that escaped from a contraction in the period. The result was the latest among a batch of strong economic releases, adding to Banxico’s recent signal that interest rates will remain at the current record high of 11.25% as long as possible to curb inflation. The figure compares to a current interest rate of 5.25% in the US. The Mexican peso has been among the world’s strongest this year, appreciating 14.4% against the dollar since the end of December 2022.
The Mexican peso traded at 17 per USD in July, its strongest since November of 2015 as evidence of a resilient Mexican economy supported forecasts that the Bank of Mexico will remain hawkish for a prolonged period. Fresh PMI data showed that the country’s manufacturing sector expanded in June, the only country within the Americas that escaped from a contraction in the period. The result was the latest among a batch of strong economic releases, adding to Banxico’s recent signal that interest rates will remain at the current record high of 11.25% as long as possible to curb inflation. The figure compares to a current interest rate of 5.25% in the US. The Mexican peso has been among the world’s strongest this year, appreciating 14.4% against the dollar since the end of December 2022.
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