The Mexican Peso held steady at a 2-week high of around 20 per USD, gaining 1.5% so far this year after the country’s central bank lifted the key interest rate by 75bps as expected in its June meeting. Further, the monetary authority hinted at more rate-hikes going forward, including taking forceful measures in case high inflation persists. Currently, inflation in Mexico runs at a 21-year high of 7.65%, lifted by a spike in prices of food and housing amid the Russia-Ukraine war, global supply bottlenecks and the pandemic restrictions. Looking forward, the central bank revised upwards the forecasts for both headline and core inflation while expecting economy to continue recovering gradually during the second quarter of 2022.
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 June of 2022.
The Mexican Peso is expected to trade at 20.17 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 21.18 in 12 months time.