The Mexican peso sank to an over 2-1/2-month low of 20.5 per USD towards the end of the third week of June, amid a general greenback strength, after the Fed raised its inflation forecasts for 2021 and brought forward the deadline to start hiking interest rates to 2023, which was enough to raise some concerns about overheating inflation among traders. Earlier this month, President Obrador appointed Mexico’s Finance Minister as the new Governor of Bank of Mexico, in a move that could extend the central bank’s dovish stance for longer than necessary and miss out on the right time to target inflationary pressures.
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 2021.
The Mexican Peso is expected to trade at 20.54 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 20.98 in 12 months time.