He mexican peso was depreciated against dollar on Wednesday, with more strength than other currencies in the region. The local currency gave ground due to a strengthening of the greenback, in a market attentive to the news about Donald Trump.
He exchange rate It ended this day at the level of 20.3223 pesos per dollar. Against a record of 20,1136 units yesterday, with official data from the Bank of Mexico (Banxico), left the currency a loss of 20.87 cents or 1.04 percent.
He dollar price It moved in a range with a maximum of 20.3340 units and a minimum level of 20.0985. He Dollar Index (DXY), from the Intercontinental Exchange, which compares the greenback with six strong currencies, gained 0.47% to 106.70 units.
Investors are closely following news related to the policies that Trump plans to implement upon his return to the White House. In addition, they study the comments made by the officials of the Federal Reserve on interest rates.
“The peso is turning red again after four days in the positive, remaining above 20.20, a perspective that could continue until the end of the year due to Trump’s return to the international political sphere,” said Renato Campos, of Squared Financial.
“The advance of the dollar was widely observed in the currencies of emerging economies. The greatest declines were observed in Latin America and Europe. The range to be observed will continue to be from 20.20 to 20.60,” said Juan Carlos Cruz Tapia, professor at the EBC.
Likewise, the peso faces nervousness caused by an increase in tensions in Europe, after Ukraine’s attack on Russia with long-range missiles. “The dollar is expected to maintain strength due to global tensions,” said Masari Casa de Bolsa.
According to the technical projections of the local firm Banco Base, the Mexican currency could soon approach the level of 20.80 units per dollar, a level that, if broken sustainably, could easily take it to the next ceiling at 21 pesos.
What are the key factors contributing to the recent depreciation of the Mexican peso against the dollar?
Here’s an interview with two guests – Roberto Hernandez, an economic analyst at Banco Base, and Celeste Torres, a currency trader at Masari Casa de Bolsa – about the recent depreciation of the Mexican peso against the dollar:
*Section 1: The Impact of Donald Trump on the Mexican Peso*
Interviewer: Good afternoon, Roberto and Celeste. Can we start by discussing the impact of Donald Trump’s policies on the Mexican peso? How have his actions and statements affected the currency since he took office?
Roberto Hernandez: Good afternoon. Yes, Trump’s policies have had a significant impact on the Mexican peso. His threats to renegotiate NAFTA and build a wall along the US-Mexican border have made investors nervous about the future of Mexico’s economy, leading to a substantial depreciation of the peso. Additionally, his rhetoric on immigration and trade has contributed to uncertainty in the market.
Celeste Torres: I agree with Roberto. The peso has been volatile since Trump took office due to his protectionist policies and unpredictable behavior. However, it’s also important to note that the strengthening of the US dollar in recent weeks has put pressure on many emerging market currencies, including the peso.
*Section 2: Interest Rates and the Federal Reserve*
Interviewer: Interesting. So, the Federal Reserve’s monetary policy decisions also play a role in the value of the peso. Roberto, do you think the Fed’s plans to hike interest rates could further impact the Mexican currency?
Roberto Hernandez: Yes, definitely. Higher interest rates in the US tend to attract investors looking for higher returns, which can lead to capital flight from Mexico. This can weaken the peso as demand for it decreases. The Fed’s interest rate hike plans may also strengthen the dollar, adding to the peso’s depreciation.
Celeste Torres: I see it differently. The Fed’s interest rate hikes could actually provide some stability for the peso by increasing the attractiveness of US assets. But, as Roberto mentioned, the peso’s fate is closely linked to Trump’s policies. If his administration
