Home » Mexican Peso Opens with Losses Against Dollar Due to Middle East Tensions: Week in Review

Mexican Peso Opens with Losses Against Dollar Due to Middle East Tensions: Week in Review

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Mexican Peso Opens with Losses Against Dollar Due to Middle East Tensions: Week in Review

The Mexican peso opened with losses against the dollar on Saturday, April 20, 2024, due to concerns over potential tensions in the Middle East. The Mexican currency closed at 17.0922 units per dollar on Friday, April 19, with a 0.10% decrease. This marked a weekly decrease of 2.84%, the most significant since October of the previous year. Analysts anticipate that investors will closely monitor the conflict in the Middle East in the short term.

Speculative positions on the peso’s appreciation decreased on the Chicago Mercantile Exchange this week, reflecting market uncertainty. Despite this, a report indicating growth in retail sales in February suggests that the Mexican economy could uphold the restrictive monetary policy of the Bank of Mexico, contributing to the peso’s strength.

Deputy governor of the central bank, Jonathan Heath, suggested that interest rates may remain stable for a longer period than initially expected, potentially keeping the benchmark rate at 11% in May. The exchange rate of the dollar in Mexican banks on Saturday, April 20, 2024, is not available as most banks are closed on weekends. However, Azteca Bank remains open and offers the purchase of dollars at $16.30 pesos per unit and sales at $17.74 pesos per unit.

Various factors influence the dollar price in Mexico, including the inflow of remittances, regional political situations, and economic events both nationally and internationally. The relocation of companies to Mexico, known as nearshoring, also impacts the dollar’s price. The country’s close proximity and commercial relationship with the United States make it an attractive option for businesses.

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