Skip to content USDMXN Analysis – May-28-2024
USD/MXN—The Mexican peso has strengthened to around 16.65 per USD, rebounding close to the one-month high of 16.55 USD observed on May 20th. This rise comes as the US dollar weakens and Mexico prepares for its general elections this weekend. Key factors influencing the peso’s future include the upcoming election results and the release of unemployment data.
USDMXN Analysis – May-28-2024
Recent comments from Banxico’s Deputy Governor Irene Espinosa have also bolstered the peso. Espinosa indicated that the central bank would likely maintain its current high interest rate of 11%. This decision comes in response to ongoing inflationary pressures, making it unlikely that Banxico will start lowering rates soon. (Source Bloomberg)
Banxico Battles Rising Inflation
May’s mid-month headline inflation rose to 4.78%, up from 4.63% the previous month. This increase confirms the persistent inflationary pressures that Banxico aims to counteract with its high interest rates.
Mexico’s Economic Outlook Hinges on Elections
As Mexico approaches its general elections, investor sentiment will be shaped by election outcomes and economic indicators like unemployment data. A stable and robust peso is crucial for the country’s economic outlook, and current measures by Banxico appear to support this goal. Investors will be closely watching these developments to make informed decisions.
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