The national currency had another day of losses at the start of the day this Friday, June 7, and it is the fourth day of the week that it has lost value against the US currency. The dollar broke the $18 barrier, while the markets are awaiting the May jobs report and the last major index before the next meeting of the Federal Reserve (Fed).
He American dollar It is traded mid-day at 18.31 Mexican pesos on average and broke the 18 peso gang for the first time since October of last year.
In reference to the profitability of the last week, the American dollar accumulates a promotion of 5.86%%so that in year-on-year terms there is still an increase in the 5.26%.
According to information from Blomberg Línea, the national currency lost ground after the announcement by Morena and its allies to put to a vote in September the constitutional reforms proposed by President Andrés Manuel López Obrador.
The National Institute of Statistics and Geography announced that inflation in Mexico grew 4.69 percent in the annual rate in May, this represented a lower increase than expected by the market. The national currency lost the little ground it had recovered at the close of trading yesterday and international markets will be attentive to the next meeting of the Federal Reserve.
Compared to past days, it has had two consecutive positive sessions. In reference to the volatility of the last week, it is clearly higher than the numbers achieved for the last year (11.06%), which indicates that it is presenting a more unstable behavior.
The “superweight”, inflation and GDP
Mexico’s economy has registered a series of contrasts, which will continue, according to the forecasts of the Bank of Mexico (Banxico) for 2024.
Regarding the exchange rate, the central bank expects the dollar to sell throughout the year between 17.68 pesos and up to 18.67 pesos per unit. A conservative forecast considering that the national currency destroyed the 2023 forecasts, breaking the floor of 17 pesos per unit, which has not been seen for eight years.
For its part, inflation is expected to continue its downward trend, since reaching its historical maximum of 8.7% at the end of 2022. Banxico forecasts inflation of 4.02% in 2024, however, it is not expected to be reached. soon to the ideal of three percentage points.
The above, however, contrasts with the economic growth forecasts, since the central bank expects it to be 2.29% in 2024.
What is the Mexican peso like?
The Mexican peso is the legal tender of Mexico and is the first currency in the world to use the $ sign, which was later adopted by the United States for the dollar.
This currency is the fifteenth most traded currency in the world, as well as the most traded in Latin America and the third on the continent only behind the US and Canadian dollars.
Currently the abbreviation MXN is used to talk about the Mexican peso, but before 1993 the acronym MXP was used.
The coins normally used in Mexico are semicircular in shape and have the national coat of arms on the reverse. One Mexican peso is equivalent to 100 cents. There are coins of 1, 5, 10 and 20 pesos; while in bills there are 20, 50, 100, 200, 500 and 1,000 pesos.
