The Mexican peso is on a bull run.
Signs that the US is emerging from the financial turmoil in better shape than Europe, a strong move by President Enrique Peña Nieto this week to push through structural reforms, and the prospects of a ratings upgrade from Standard & Poor’s all combined to help propel the peso to its highest level against the US dollar since September 2011 on Thursday. Continue reading »
What’s up with the Mexican peso? So far this month, the currency has weakened a little, and on Friday it was trading at 12.67 to the US dollar compared with 12.61 at the start of the month. Could it be that the rally since last year is petering out?
Not likely. Continue reading »
To judge by Thursday’s sell-off of the Mexican peso, investors are more than a little worried about Andrés Manuel López Obrador, the country’s leftwing presidential candidate.
The scare came after a poll, published by Reforma newspaper, showed that López Obrador was now just four percentage points behind Enrique Peña Nieto, current front runner and candidate of the centrist Institutional Revolutionary Party (PRI). Continue reading »
If Wednesday’s dollar auction by Mexico’s central bank has anyone worried about whether it has finally followed in Brazil’s interventionist footsteps, they shouldn’t worry too much.
True, the auction took place as the peso slid against the dollar on fears stemming from Greece and Europe’s debt crisis was the first currency intervention since 2009. And it was the first time the bank used its dollar-auction mechanism since it was reintroduced towards the end of last year. Continue reading »