March 10, 2015
Mexico’s peso fell to a record low on speculation U.S. interest-rate increases will diminish the appeal of higher-yielding emerging-market assets as the drop in oil prices dims the outlook for foreign investment. The peso slid 0.4 percent to 15.5424 per dollar at 9:073 a.m. in New York after reaching 15.6271, past the record set in March 2009 when a global recession throttled export demand along with inflows from remittances, tourism and investment. The pricing data go back to 1993, when the government of then President Carlos Salinas de Gortari redenominated the currency to create the so-called nuevo peso.
September 30, 2014
Mexico’s peso dropped to its lowest in almost eight months as concern the U.S. Federal Reserve will raise interest rates next year overshadowed optimism that changes in the Latin American nation’s energy laws will boost growth. The currency fell 0.4 percent to 13.4990 per U.S. dollar at 1:26 p.m. in Mexico City, the weakest on a closing basis since Feb. 3. The peso has lost 3.9 percent since June, which would mark the biggest quarterly decline since June 2013. “The Fed trumps all,” Eduardo Suarez, a foreign-exchange strategist at Bank of Nova Scotia, said in a telephone interview from Toronto. “There’s a general risk-off movement.”
May 27, 2014
Photo by Guanatos Gwyn
Financial Times, 5/27/14
Two countries, both linked to the US economically and geographically.
But in a battle between the currencies of Canada and Mexico, it is the peso which many analysts favour.
They are not overly negative the Loonie, per se. As Citi points out, rate cut fears have abated as inflation steadies; the country has “recently shifted to a fiscal surplus, a first since 2008”; net foreign buying of Canadian equities is at cyclical highs.
April 14, 2014
Mexico’s peso posted its biggest weekly drop since January as the country’s political parties wrangled over rules for opening up the energy industry, fueling concern that so-called secondary laws may be delayed. The currency weakened 0.3 percent this week to 13.0425 per dollar according to data compiled by Bloomberg. It was the biggest weekly slump since Jan. 24 after the peso rose 0.2 percent today.
While analysts surveyed by Bloomberg had forecast that the peso would gain an emerging-market best 3.6 percent this year as growth in Latin America’s second-biggest economy quickened, the currency is little changed this year as expansion flounders. Juan Bueno, a lawmaker from the opposition National Action Party, known as the PAN, said in an interview this week that his party hadn’t yet reached an agreement with President Enrique Pena Nieto’s government on oil regulators
July 19, 2013
For those who like volatility, there’s money to be made on the Mexican peso. It could rally on the hopes of a more robust future for Latin America’s second-biggest economy. Or it might get hammered by U.S. Federal Reserve policy moves. Maybe both will happen in the next six months.
While other regional economies are suffering from China’s slowing demand for commodities, Mexico is humming along. Factory exports to the United States are seen picking up and a series of economic reforms has investors seeing a brighter future.
July 16, 2012
Mexico’s peso fell after a German court said it would take more than eight weeks to rule on the euro-area’s permanent bailout fund, fueling concern that the region’s debt crisis will take longer to be resolved.
Speculation that slowing global growth will hurt the market for Mexican exports helped make the peso Latin America’s worst- performing major currency in 2011.
July 9, 2012
The Wall Street Journal, 07/09/2012
Mexican stocks opened lower Monday on continued concerns about the health of the global economy, as rising Spanish borrowing costs furthered concerns about Europe’s debt crisis.
The IPC index of Mexico’s most-traded shares was recently down 101 points, or 0.3%, to 39731 on volume of 4.5 million shares valued at 114 million pesos ($8.5 million).