The Mexican peso recently found momentum in the Federal Reserve’s less restrictive stance in its latest monetary policy announcement, which contrasted with the Bank of Mexico’s (Banxico) tone, which was more cautious and expected to taper gradually. Interest rates.
This pushed the national currency to trade below 17.10 units, marking the fourth consecutive session of gains since Thursday. 17.04 cents per dollarThat equates to 0.33 percent, or 5.65 cents, according to Banxico filings.
However, step Experts consulted by El FinancieroThe Mexican currency cannot end 2023 at its current level because they believe the exchange rate is not exempt from providing changes in its movements in the last days of the year.
From Monex’s point of view, Director of Economic and Exchange Analysis, Jannet Queiroz, commented that we are waiting for the closing of 17.35 units because the exchange rate is one of the most volatile variables, so they have not ruled it out yet. Little bounce.
Meanwhile, James Salazar is Deputy Director of Economic Analysis at CIBanco, hinted that there is a possibility of seeing the local currency touch 16.9 units in the coming days, especially if positive figures come in for PCE, which is indicative of prices in the US. “This will consolidate the rally and put the Mexican peso below 17 pesos for a while,” he said.
However, the expert highlighted that, “The local currency may come under some pressure by the end of the year Due to seasonality issues and profit taking, it will be pointing towards 17 pesos and 30 cents, although in the meantime we may see a bit more appreciation, which will be temporary.
Therefore, Vector’s fixed income and exchange rate strategist, Ricardo BravoHe shared that his year-end expectation for the local currency is 17.29 pesos per greenback.
“Yes, we could see a certain depreciation, however this rhetoric of the central bank and this strength of the exchange rate tells us that external factors are influencing the movement of the peso rather than factors. Locals have encouraged him.
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