During the last six days, the Mexican peso has started below 20 units per dollar, adding up to an appreciation of more than 2% in that period, according to data from
From that moment on, the dollar lost strength against its peers. In the case of the Mexican currency, it extended its gains at the beginning of Wednesday with its best level in the month, standing at
Even so, experts agree that the peso is resisting an adverse scenario and the possibility of further rate hikes in
Contrary to what happened at the
“With these comments, we could expect Banxico to be more restrictive than the Fed. And this policy relative to
Along the same lines, Raúl Álvarez de Castillo, director of Economic Studies at Citibanamex, said: “I believe that this has caused the market to begin to position itself for a potential increase of 75 basis points by Banxico in some of its upcoming decisions, and this allows the peso to appreciate, because it is expected that
There are other reasons also supporting the peso: remittances, which remain high, especially compared to pre-pandemic levels, contributing to the balance of payments; and, on the sidelines, the latest news that has been positive, such as Fitch maintaining the sovereign’s credit rating.
Nevertheless, there are still risks for the Mexican currency, for example, the escalation in inflation and the continuation of the war in
With this scenario in mind, some projections take the peso to a level closer to
To be sure, there is still debate in the market as to whether in June other board members will join
In that scenario, González Tabares added: “Even if a 75 basis point increase is not announced next time, the fact that it remains the same as the Fed is still quite restrictive”.