The Mexican peso closed the week of February 27 to March 3 with an appreciation of 2.53% or 46.5 cents, trading around 17.95 pesos per dollar, touching a maximum of 18.42 and a minimum of 17.94 units per greenbacklevel not seen since April 2018.
Gabriela Siller, director of economic analysis at Banco Base, indicated in a report that this weekly appreciation is the highest since the week ended August 12, 2022.
It is worth mentioning that, in February, The Mexican currency appreciated 2.88%, and in the week that is ending it did so at almost the same level.
The Banco Base specialist comments that the reasons for this strengthening of the Mexican peso are:
The US dollar weakened against its main crosses, losing 0.82% according to the weighted index. The decline of the dollar is due to a correction, after advancing for four consecutive weeks an accumulated of 2.86%.
In addition, US Federal Reserve (Fed) officials made comments this week that More interest rate hikes will be needed.
Risk appetite rose due to positive indicators for the Chinese economy.
In Mexico, the expectation remains that the Banco de México (Banxico) will continue to raise the interest rate to a level of 11.50% to 11.75%a sustained growth in exports is also maintained, with those of January showing a monthly rise of 6.06%.
And Tesla’s announcement that it will build a mega factory in Nuevo León also helped, and the expectation that it generates of the arrival of more foreign direct investment.
In the wide basket of main crosses, The Mexican peso was the second most appreciated currency in the week after the Chilean peso that advanced 2.66%.
On the other hand, the euro peso touched a minimum of 19.0748 and a maximum of 19.5222 pesos per euro.
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