He Mexican peso advanced this friday sixth consecutive day and came to his best level since december 2015in a context of slowdown in consumer prices in the United States in June that pointed to a possible relaxation of the Federal Reserve’s (Fed) bullish monetary policy.
The Aztec country’s currency rose around 0.35% against Thursday’s Reuters reference price and traded at about 16.7766 units against the dollar. The prolonged strengthening of the weight has been given by the hand of a depreciation of the neighboring currency, the dollar.
“It should be remembered that during the week, the US dollar has weakened by 2.02%, given the expectation that the Fed is close to the end of the cycle of interest rate increases,” said Gabriela Siller, a senior analyst at Banco Base, in a note sent to clients.
In the week as a whole, the peso rose more than 2%, in addition to accumulating six consecutive days of gains, an increase and a continuous bullish streak that had not been seen since March.
Mexican superweight: warn of negative effects
Although the forceful appreciation of the Mexican currency has been held by the government of the president Andres Manuel Lopez Obradorsome specialists have also pointed to the negative effects that this rise could have, particularly for exports and remittances to the Latin American country.
In so far this year the peso accumulates an appreciation close to 14%.
Source: Ambito
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