Mexican Peso

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Pablo Soria de Lachica – Summarizes the Recent Rise of the Mexican Peso

The aggressive monetary policy of the Bank of Mexico – raising benchmark interest rate to an 8 year high of 6.75% in May – has driven the peso to its top mark of 18.3345 on July 6 against the U.S. dollar. Pablo Soria de Lachica, world renowned broker, discusses the recent hike. As the North American Free Trade Agreement remained unchanged, the peso tore up the ranks becoming the world’s best performing major currency this year, and reestablished its 20% downtrend for USD/MXN. “The peso has had good momentum relative to other emerging currencies in recent months, and that could continue for some time longer,” said Morgan Harting, chief portfolio manager for all multi-asset income strategies at AllianceBernstein, a renowned asset management company, “And though it is no longer cheap, it also does not look expensive in terms of purchasing…