The Mexican peso closed Monday’s session with gains against the US dollar, reaching levels not seen in seven years, according to experts and data from the Central Bank of Mexico (Banxico).
The Mexican currency, in its 48-hour value for interbank operations, ended Monday’s session at 17.4260 pesos per dollar after starting the session at 17.5770 units, according to Banxico’s quote.
The director of economic-financial analysis at Banco Base, Gabriela Siller, explained that the closing value of the Mexican currency represents its lowest level since May 3, 2016.
The recent appreciation seen by the peso is due to the flow of dollars coming into Mexico from exports, remittances, foreign direct investment, and a high-interest rate, the expert explained.
The Mexican peso closed in 2022 with a parity of 19.4999 units per dollar.
“In the short term, the peso could continue to appreciate, as there is the expectation that the Federal Reserve will no longer continue to raise interest rates, which causes capital to move from the United States to other countries, including Mexico,” the expert added.
Grupo Financiero Banorte highlighted that the Mexican peso continues with a solid performance to become the third currency with the highest gains among emerging markets.
The next resistance is at 17.17 pesos per dollar, a level not observed since April 2016, she estimated.
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