The Mexican peso was changing hands around $19, the strongest since February 2020, as an aggressive tightening from the central bank continued. The Bank of Mexico hiked its benchmark interest rate by 50 bps to record 10.5% in December, adding to the 675 bps increases seen since its tightening path began in June 2021. The Mexican peso had its best yearly performance since 2017 and was one of the top-performing emerging market currencies in 2022. However, as 2023 rolled out, analysts were less optimistic about this outperformance, with an expected end to the Bank of Mexico's rate hikes cycle and an economic downturn in the US, the country's top trading partners, likely to put pressure on the currency.
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 February of 2023.
The Mexican Peso is expected to trade at 18.71 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 19.70 in 12 months time.