The Mexican peso hovered around 20.2 against the greenback in late October, close to a one-month high of 20.18 hit in the prior week, underpinned by hopes of a fourth interest rate hike this year as the October mid-month annual inflation rate came at 6.12%, above market expectations of 6.09%. In previous monetary policy decisions, the Bank of Mexico has reassured market participants of its proactive stance to curb inflation expectations. Additionally, strong economic recovery signs added momentum to the peso, with the latest labor market data showing the unemployment rate inching lower by a decimal percentage point to 4.2%, while retail sales advanced 7.2% in August, faster than market expectations of a 6.6% rise.
Historically, the Mexican Peso reached an all time high of 25.78 in April of 2020. Mexican Peso - data, forecasts, historical chart - was last updated on October of 2021.
The Mexican Peso is expected to trade at 20.36 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 20.91 in 12 months time.