Mexico’s Super Peso Shrugs Off Warning Signs to Touch New High
- Peso is one of the best-performing currencies in the world
- Currency set to see flows as Banxico holds off on rate cuts
Exchange rate information displayed at a currency exchange office in Mexico City, Mexico, on Wednesday, July 5, 2023.
Photographer: Jeoffrey Guillemard/BloombergThis article is for subscribers only.
Mexico’s peso is reaching high after high, with traders ignoring warnings that it has become sharply overvalued.
The peso gained as much as 1.4% on Wednesday to its strongest level since 2015, rallying with global markets after US inflation data offered hope the US Federal Reserve would end its most aggressive interest-rate hikes in decades. It pared gains to trade about 0.9% higher versus the dollar as of 3:56 p.m. in New York, still one of the best performing Latin American currencies of the day.