Currency converter us to mexico9/2/2023 Banxico raised interest rates to a record high of 8.5% with the potential for further increases. The pair pulled back to 19.84 in mid-August as markets began anticipating the US Federal Reserve (Fed) turning dovish. The USD/MXN rate moved back up to 20.86 in mid-July, as the Banxico paused its own interest rate hikes. The US dollar rebounded to 20.48 in early May, as the US increased the pace of interest rate hikes it started in March, but dropped to 19.56 a month later. But the peso had recovered by the end of the month and strengthened to 19.79 by mid-April. The USD/MXN pair started 2022 at 20.51 and climbed to 21.38 in early March as the dollar rallied in response to the Russian invasion of Ukraine. That dynamic has driven the dollar to 20-year highs against a basket of currencies – as measured by the US Dollar Index ( DXY) – this year, and sent it to record highs against some emerging markets currencies. Investors tend to use the dollar as a safe haven asset to protect wealth during times of economic and geopolitical uncertainty. The US dollar is the world’s reserve currency and as such is influenced by the health of the global economy as well as the US economy’s performance. The MXN is now the third most-traded currency in the Americas behind the US and Canadian dollars ( CAD). One new MXN was equivalent to 1,000 old MXP pesos. The US dollar skyrocketed from 12.50 against the peso to more than 3,000, prompting the government to introduce the nuevo (new) peso, MXN, in January 1993. As a result, commodity prices can have an influence on the value of the peso.įollowing the 1970s oil crisis, Mexico defaulted on its external debt and saw significant capital outflows, inflation and currency devaluation. Oil products account for around 4% of total exports. Mexico exports oil, vehicles and metals, such as copper and gold. The MXN is accepted for payment in border towns in the US, as well as Guatemala and Belize. The peso has historically been one of the most stable currencies in Latin America thanks to Mexico's economic growth and trading relationship with the US. The Mexican peso is Mexico’s official currency, issued by the country’s central bank, the Banco de Mexico (Banxico). The USD/MXN pair refers to how many Mexican pesos – the quote currency – are needed to buy one US dollar – the base currency. In forex trading, currencies are traded in pairs with a base currency and a quote currency. What has supported the value of the peso, and will it be able to continue holding ground? In this article we look at the key drivers for the USD/MXN foreign exchange ( forex) rate and the latest long-term forecasts from analysts.
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