The Mexican peso continues to strengthen in international markets, reaching a low of 16.31 pesos per wholesale dollar, its lowest level since August 2015. This appreciation is attributed to various factors, including foreign currency flows from exports, remittances, and investments, as well as the interest rate differentials between Mexico and the United States. Gabriela Siller, director of economic analysis at the Base financial group, also mentioned the potential benefits of nearshoring for Mexico.
Despite speculation about the Federal Reserve cutting interest rates later, the peso’s value has remained strong. The rate on 10-year Treasury notes has also increased, reaching 4.45% and touching a high not seen since November 2023. By midday on Monday, the Mexican peso was trading at 16.33 pesos per dollar wholesale, showing a 0.70% appreciation compared to the previous day.
The peso is among the top four most appreciated currencies against the US dollar, trailing behind the Israeli shekel, Swedish krona, and South African rand. At retail counters, the dollar opened at 16.77 pesos on Monday, 0.47% higher than Friday’s close. Overall, the Mexican currency continues to show strength in the market, defying expectations and trends.