The Mexican peso bounced back to trade around 20 per USD on Thursday supported by hopes of a further interest rate hike, higher oil prices and also a broad rout in the safehaven greenback. Mexico’s mid-month inflation rate quickened to 5.87% in September from 5.58% in the prior month and beat analyst forecasts of a 5.72% jump, fueling hopes of a third interest rate hike in four months. Also, prices of crude oil futures, an important Mexican export, gained 1% towards a near 2-month high of $73 per barrel as 16% of the Gulf of Mexico oil production remained offline after the impact of two hurricanes and EIA crude oil inventory stocks fell to the lowest level since 2018 in the previous week.
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 September of 2021.
The Mexican Peso is expected to trade at 20.21 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 20.80 in 12 months time.