Mexican Peso Dips To 20 Per Dollar Amid U.S. Election Uncertainty

10/29/2024 5:00:13 AM

(MENAFN- The Rio Times) The Mexican peso has retreated to 20 units per dollar for the first time since early September. This shift reflects growing concerns about the upcoming US presidential election and its potential impact on Mexico's economy. financial experts and the bank of Mexico (Banxico) have weighed in on this development.

On Monday, the peso closed at 20.0317 per dollar in interbank trading. The day saw fluctuations between a high of 20.0570 and a low of 19.9800 units. These figures mark a return to levels not seen since September 10, when the peso stood at 20.0911 per dollar.

Monex Financial Group attributes this weakening to uncertainty surrounding the US elections. They predict the peso will likely move between 19.93 and 20.10 overnight. This forecast considers the limited economic agenda for the next day and current market trends.

Banco Base suggests the peso may face further depreciation. They point to several upward risks, including the November 5 US presidential election. The bank notes that the peso has solidified its position around the 20-per-dollar mark.

The Mexican currency entered a period of volatility following the June 2 local elections. These elections resulted in Claudia Sheinbaum's victory in the presidential race. Before this event, on May 31, the peso traded at 16.9682 per dollar.

At that time, the Mexican government proudly dubbed the peso a "superpeso" due to its strength. However, recent developments have challenged this status. The peso's fluctuations highlight the interconnectedness of North American economies.

As the US election approaches, investors and economists will closely watch the peso's performance. Its movements may offer insights into market perceptions of potential election outcomes. The coming weeks could prove crucial for the Mexican currency's stability.

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