At the close of the session on Wednesday, the exchange rate was quoted at 18.13 pesos per dollar, a new minimum. The Bank of Mexico estimated the closing at 18.1430 pesos per dollar, a gain of almost 1% compared to Tuesday’s closing.
This level had not been seen since April 2018 and marks a new trend for the Mexican peso, with the possibility of the dollar falling below 18 pesos per unit.
The weighted index of the dollar, which measures the behavior of the North American currency against a basket of main currencies, fell close to 0.40% this Wednesday.
Added to the fall of the dollar are some factors that strengthen the Mexican currency, such as the 25% annual growth in exports reported in January, remittances, the growth of industrial activity in China, new investments in Mexico, with the new Tesla plant in Nuevo León as a milestone that confirms the nearshoring phenomenon as a new flow of capital to the country, according to an analysis by Banco Base. In addition to the interest rate differential between Mexico and the United States.
Now the question is whether the dollar will reach the level of 17.90 pesos per dollar in the short term. “The next technical objective is at the psychological level $18.00 – which also corresponds to the Fibonacci of 161.8% of the movement between February 2 and 6 –, breaking it would open the possibility that parity reaches $17.93, which was the minimum of 2018”indicates a Monex analysis.