The Mexican peso climbed yesterday and kept its gains today amid speculations that the US Federal Reserve would increase its stimulus for the US economy, improving prospects for export-oriented countries.
Federal Reserve Bank of Chicago President Charles Evans hinted that he would vote for easing measures, though he does not vote on the Federal Open Market Committee this year. Nevertheless, the comment shows that US policy makers did not forget about quantitative easing entirely. It is not surprising, considering disastrous employment data that was released at the start of this month. Most of Mexican gains goes to the United States, therefore performance of the US economy strongly affect Mexico’s currency.
USD/MXN was flat at 13.9760 as of 7:40 GMT today after it fell from 14.0890 to 13.9730 yesterday.
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