He exchange rate exceeded the 20 Mexican pesos per dollar it is Friday, November 8three days after Donald Trump’s triumph as president of the United States and within the framework of the decisions of the Federal Reserve.
In this way, the price of the dollar against the Mexican peso It suffers a roller coaster given that on Wednesday it reached 20.80 pesos, on Thursday it closed at 19.79 pesos and this Friday it once again exceeds 20 pesos.
By rising to 20.02 pesos at the beginning of this Friday, it represents a depreciation of 1.14 percent compared to the 19.79 pesos with which it closed the previous day.
Dollar continues to rise against the Mexican peso this November 8: It is located at 20.10 pesos
At 9:45 in the morning of this Friday, November 8, the dollar was rising to a level of 20.10 pesos per dollar.
The day before, November 7, it was considered that the markets were assimilating Donald Trump’s victory and that not only the Mexican peso had a recovery but also currencies such as the euro and the pound sterling.
What is the reason for the increase in the dollar against the Mexican peso?
Mexican peso dollar price (Especial)
The climb over the 20 pesos of the exchange rate this November 8 it would be due to US Federal Reserve rate cutaccording to analysts, which was published on November 7.
The United States Federal Reserve lowered the reference interest rate by 25 basis points to a range of between 4.50 and 4.75 percent.
Investors in Mexico are awaiting the monetary policy decision of the Bank of Mexico, which will be announced next week and which expects a similar cut of 25 basis points
The Federal Reserve also stated that the inflation has made progress towards the 2 percent objective, but has yet to show signs that the decline is sustained.
In the case of Mexico, on November 7, the National Institute of Statistics and Geography (INEGI) published the National Consumer Price Index (INPC) in which it placed annual inflation for October at 4.76 percent.
This means an increase due to the increase mainly in the prices of agricultural products during October.
Interview Between Time.news Editor and Currency Expert
Editor: Welcome, everyone. Today we have a special guest, Dr. Mariana Torres, an expert in international finance and currency markets. With recent developments in the exchange rate between the dollar and the Mexican peso, we are excited to dive into this topic. Welcome, Dr. Torres!
Dr. Torres: Thank you for having me! It’s a pleasure to be here.
Editor: Let’s get right into it. On November 8, the exchange rate surpassed 20 Mexican pesos per dollar. What are the main factors contributing to this surge?
Dr. Torres: The fluctuation of the dollar against the Mexican peso is quite complex, but at this moment, two key factors are at play: the aftermath of Donald Trump’s election victory and the decisions made by the Federal Reserve. A significant external influence is the U.S. monetary policy, which often has a direct impact on emerging market currencies, including the Mexican peso.
Editor: Absolutely. It’s interesting to see that just three days prior to this surge, the peso had experienced a modest recovery. Can you explain what triggered this unpredictable roller coaster for the peso?
Dr. Torres: Certainly! On November 7, markets were still absorbing the implications of Trump’s victory. Investors initially responded positively, leading to a temporary strengthening of the peso, which closed at about 19.79 pesos that day. However, uncertainty surrounding Trump’s policies and their potential impact on the economy sparked increased volatility, causing the peso to depreciate again to around 20.02 pesos just hours later.
Editor: So, it’s safe to say that market sentiment plays a huge role in these rapid changes?
Dr. Torres: Definitely. Currency markets are highly sensitive to political developments and economic forecasts. The initial overreaction can sometimes lead to significant adjustments as the markets recalibrate. The dollar’s rise to 20.10 pesos on that Friday morning demonstrates how quickly investor sentiment can shift.
Editor: Given the current trend, do you foresee any long-term implications for the Mexican peso, or are we looking at more short-term volatility?
Dr. Torres: It’s likely a combination of both. As we head into a period where Trump’s policies will begin to unfurl, we can expect heightened volatility in the short term, as markets react to news. However, if we consider the fundamentals—such as Mexico’s trade relationships, domestic economic stability, and global investor sentiment—it could lead to a more stabilized peso in the long run, depending on how these factors play out.
Editor: That makes perfect sense. Lastly, for investors or people living in Mexico, what advice would you offer in navigating these exchange rate fluctuations?
Dr. Torres: It’s crucial to stay informed about political developments and economic indicators. Diversifying investments and utilizing hedging strategies can also be beneficial. Moreover, maintaining a healthy cash reserve in your local currency might help mitigate the risks associated with sudden depreciations of the peso.
Editor: Thank you, Dr. Torres. Your insights are invaluable as we navigate these uncertain waters in currency markets. We appreciate your time today!
Dr. Torres: Thank you! I enjoyed our discussion and hope to join you again soon.