Peso remains rising against the dollar at the close of November 20

Peso remains rising against the dollar at the close of November 20
Peso remains rising against the dollar at the close of November 20

File image of banknotes in Mexican pesos and US dollars, in a currency exchange house in Ciudad Juárez, Mexico. January 15, 2018. REUTERS / José Luis González

He American dollar quoted at closing 17.10 pesoswhich represented a change of 0.71% compared to the price of the previous day, when it closed with 17.22 pesos.

In the last week, the American dollar registers a drop in 1.35%for this reason, since a year ago it still accumulates a decrease in 6.8%.

If we compare the figure with previous dates, it reversed the result of the previous session, where it ended with an increase of 0.07%, without being able to establish a defined trend in recent days. The volatility referring to the last week presented a lower performance than the volatility reflected in the last year’s data, showing itself as a value with less variations than expected lately.

Throughout the year, the peso has strengthened against the US currency. (Jovani Pérez/ Infobae)

He Mexican peso is going through a winning streak against the American dollar Since mid-2022, however, it is in the second half of 2023 that the currency has reached its best levels not seen since 2016, reaching the barrier of 17 units per greenback.

Colloquially called as “superweight”the strength of the Mexican currency is largely due to the decisions of the Bank of Mexico (Banxico) regarding reference rates, at the same time increasing its attractiveness for investors.

With the stability achieved in public finances and remittances in 2023, the Government of Mexico has estimated that the remittance record for 2022 (US$58,487 million) could be broken.

In a country where in previous years it suffered strong devaluationsthe strength of the Mexican peso against the dollar is seen as good news, since it also favors the reduction of the amount of external debt (contracted in dollars).

Financial analysts have assured that the streak of the “super peso” could end next to 2023, because while the United States Federal Reserve contemplates two increases in its interest rates, Banxico only seeks to maintain them, which would make the currency return to the 19 units per dollar.

Photo: Susana Gonzalez/Bloomberg

The Mexican peso is the legal tender of Mexico and is the first currency in the world used by the $ signwhich was later taken up by the United States for the dollar.

The Mexican peso is the fifteenth most traded currency in the worldas well as the most traded in Latin America and the third on the continent only behind the US and Canadian dollars.

Currently the abbreviation is used MXN to talk about the Mexican peso, but before 1993 the acronym MXP was used.

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