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by USDMXN Analysis – The Mexican peso has seen a noticeable increase, nearly reaching the 17 per USD level at the beginning of March. This is the highest it has been in over six weeks. The main reason behind this uplift is the country’s strong economic performance.
Recent reports, like the S&P Global Manufacturing PMI, showed that businesses in Mexico are doing quite well, with a score of 52.3. This situation means that the central bank in Mexico, often called the Bank of Mexico, might not reduce interest rates this month as previously thought.
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Employment and Economic Indicators in Mexico
Even though there has been a slight rise in the unemployment rate in Mexico from 2.6% to 2.9% in January, the job market remains robust. This slight increase in unemployment was more than what people had predicted. However, it shows that there are still plenty of jobs available.
This is important for the economy. Also, some top officials at the Bank of Mexico, like Jonathan Heath and Omar Mejia, have mentioned that any changes to the interest rates should be done slowly. They caution against reducing the rates too quickly, as it could be harmful.
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On the other side, the US dollar is facing some difficulties. The ISM Manufacturing PMI, a measure of industry health in the US, went down unexpectedly in February. This drop has made some people question the strength of the US economy.
Additionally, there’s been an increase in the number of ongoing jobless claims in the US, reaching the highest point in three months. These issues make the US dollar less attractive than other currencies like the Mexican peso.
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