Skip to content Peso Drops to 20.1 Per Dollar as Mexico Faces Political Shifts
In October, the Mexican peso weakened to over 20.1 pesos per U.S. dollar, marking its lowest value since September 2022. This drop occurred as investors closely watched political events in Mexico and the United States, along with Mexico’s recent economic data.
Firstly, uncertainty has risen in Mexico because eight Supreme Court justices plan to resign. This situation is causing concern about potential changes to the judicial system and the growing influence of the ruling Morena party.
Trump’s Potential Win Sparks Market Fears for Investors
At the same time, the possibility of Donald Trump winning the upcoming U.S. election is unsettling in the market. His previous administration had a tough approach to U.S.-Mexico relations, including proposals to increase tariffs on Mexican goods, which worries investors.
Mexico’s Economy Sees Fastest Growth Since 2023
On a positive note, Mexico’s economy grew by 1% in the third quarter compared to the previous quarter. This is an improvement from the 0.2% growth seen earlier and is higher than the expected 0.8% growth. In fact, it’s the fastest economic growth since the second quarter of 2023.
Because of this strong economic performance, the Bank of Mexico may have the opportunity to slightly lower interest rates. Doing so could help balance their efforts to keep inflation under control.
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